HPCL plans massive investment at Visakh refinery; awaits environmental nod from state

State-owned Hindustan Petroleum Corporation Limited (HPCL) is keen on expediting the process for its Rs60,000 crore (US$10.1 billion) investment plan to expand the Visakhapatnam (Visakh) Refinery in the state of Andhra Pradesh (AP) and build a greenfield refinery near the city.
In a recent interview, HPCL Director (Refineries) K. Murali said that the company was expecting the AP government to be proactive and clear the two projects on a fast-track mode.
While the refinery expansion hit a roadblock due to the moratorium declared in the bowl area of the city on greenfield and brownfield projects after India’s Central Pollution Control Board (CPCB) gave “critically polluted” cluster tag to the industrial area in the state, the AP Industrial Infrastructure Corporation (APIIC) Limited cancelled the allotment of 1,500 acres at Atchutapuram last year for the proposed 15 million ton refinery andpetrochemical complex.
APIIC cancelled the land allotment made in 2007, despite several requests from HPCL. HPCL had entered into a five-way alliance with GAIL, Oil India, Mittal Energy and France’s Total, but the project could not take off as the latter two consortium partners backed out following the global financial crisis.
“We want the land, in fact, a greater area to revive our mega refinery and petrochemical project in the Visakhapatnam-Kakinada Petroleum, Chemical and Petrochemical Investment Region (PCPIR),” Murali said.
Murali pointed out that the CPCB study was conducted three years ago and should be reconsidered “after a scientific study to find out the factors causing groundwater and other forms of pollution. There should be realistic perspective into all the parameters to lift the embargo.”
He added that HPCL was putting in place new units with critical technologies to adhere to the state’s emission norms. The Visakh refinery went onstream in 1957 under what was then M/s Caltex India Ltd. In 1978, M/s Caltex Oil Refinery (India) was merged with HPCL. Current capacity is 8.3 million metric tons per annum (mmtpa).
He said the public sector units should be allowed to expand their existing units to make their projects viable.
(June 28, 2013)