November 27, 2010 at 4:26 pm #2448
Trial run of Bathinda oil refinery from Feb
Press Trust of India / Chandigarh November 26, 2010, 20:03 IST
The trial run of the 9 million tonne Bathinda oil refinery, being developed by HPCL-Mittal Energy (HMEL), would start in February and commercial production is likely to commence in May next year.
“We are eyeing to start trial run of oil refinery in Bathinda on February 15 next year. After the successful trial run, we expect the refinery will go on stream for commercial production in the month of May (next year),” company sources said here.
The work on oil refinery began on November 14, 2007. About 92 per cent of work on Rs 18,919-crore oil refinery has been completed and a sum of over Rs 14,000 crore has been spent on this project so far, sources said.
After commissioning, the refinery would produce high value petroleum products such as LPG, naphtha, petrol, diesel, aviation fuel, pet coke etc.
As per the break up, the capacity of major products like diesel will be 3.7 million tonne, followed by petrol at 1 million tonne, LPG at 0.7 million tonne and coke at 0.9 million tonne in the upcoming refinery.
To carry crude oil imported from Iran, Iraq etc, a 1.014 km long pipeline is laid between Gujarat’s Mundra port and Bathinda at an estimated outlay of Rs 5,000 crore. “This pipeline will have carriage capacity of 18 million tonne per annum, double from present capacity,” they said. “A singly mooring point, which is 17 km from Mundra port has been set up from where the crude oil will be kept at crude oil terminal established at the port,” sources said.
After the setting up the refinery, Punjab will also see creation of Polypropylene based downstream industry in the state involving a capital investment of Rs 1,100 crore having employment opportunities for 9,000 people.
Bathinda refinery will be one of the few refineries in the country, which will have the capacity to produce 4.40 lakh metric Tonne of polypropylene, they said. While adding that currently, polypropylene granules are produced in Gujarat and Maharashtra. With Ludhiana, Bathinda, Banur and Lalru being seen as most attractive locations for the setting up of polypropylene based industry, about 50 per cent of the total produce would be consumed by the state itself, sources said.
Polypropylene granules are mainly used by plastic industry such as woven sack and film units as main raw material in manufacturing of plastic items like buckets, mugs, toys, plastic furniture, wrapping films, woven sack bags for cement and food grains.
The issue of granting additional fiscal incentives sought by HMEL from Punjab government has still remained unresolved. HMEL has been seeking Rs 400 crore per annum as interest free loan for the first 15 years from 2011-12 to 2025-26 which is to be paid back per annum from 16th year-2026-27 onwards for the next 15 years.
HMEL is a joint venture between Hindustan Petroleum Corporation (HPCL) and Mittal Energy Investment, Singapore – an ArcelorMitta company. The JV partners hold a stake of 49 per cent each in the company, the rest 2 per cent is held by financial institutions. Steel magnate LN Mittal had drawn attention of Prime Minister Manmohan Singh towards this issue and had urged him to ask Punjab government to grant fiscal incentives.
November 27, 2010 at 4:30 pm #5387
Here is update on HMEL (HPCL-Mittal JV) Bathinda Coking Refinery that states it is ready for trial production run Feb 2011 (estimates range from Feb – Mar) with commercial production by May-Jun 2011. It is said to be 92% complete on construction phase which includes a delayed coking unit.
<Note sometimes this grassroots refinery is also refered to as GGSR=Guru Gobind Singh Oil Refinery at Bathinda Punjab>
The coker technology was ABB-Lummus I think (now CBI-Lummus Coker Tech). But I don’t have lot details on HMEL/GGSR Bathinda’s ABB-Lummus coker so let me know if you have any.
The first letter of intent on this refinery was back in Apr 1996 and after over a decade of financial proposals and wrestling with the government over a 15 year tax break (reversed at one point and still in discussion but other competitors have already received similar tax breaks) the two parties started construction on the project sometime in 2006.
Also used be significant monthly updates Mar 2006 – Jul 2009 but website stopped posting in Jul 2009 @ http://www.infraline.com/ong/Refineries/baorMonthlyStatus.aspx?AspxAutoDetectCookieSupport=1.
December 19, 2010 at 5:10 am #5360
Punjab rethink on Mittal demand
Chandigarh, Dec. 17, 2010 (PTI): The Punjab government today said it would consider afresh the demand for incentives, including raising the limit of interest-free loan, by steel magnate L.N. Mittal for setting up the Bathinda refinery.
“We will take a fresh look at their demand (raising the limit of interest free loan),” Punjab industry minister Manoranjan Kalia said. He, however, did not give any time frame for deciding on the demands, particularly after the completion of 92 per cent work on the refinery.
Three months ago, Kalia had said the matter pertaining to the grant of additional incentives to the Rs 18,919-crore oil refinery being set up by HPCL-Mittal Energy Ltd (HMEL) at Bathinda was still under consideration, without giving any time frame for resolving the issue.
In August, Mittal and the top officials of HMEL had visited the refinery site and even met Punjab chief minister Parkash Singh Badal and believed to have asked for additional fiscal incentives to the refinery.
About 92 per cent of work on the refinery have been completed and over Rs 14,000 crore has been spent on the project so far. HMEL has been seeking Rs 400 crore per annum as interest-free loan for the first 15 years from 2011-12 to 2025-26, which is to be paid back per annum from the sixteenth year – 2026-27 onwards – for the next 15 years, Kalia said.
At present, the state government has offered an incentive of Rs 250 crore per year interest-free loan to the Mittals for five years. “They (Mittals) are pleading that they are getting better concessions in other states. Now they are demanding a total interest-free loan amounting to Rs 6,000 crore,” he said.
December 19, 2010 at 5:12 am #5359
Here is update on the HEML Bathinda Coking Refinery – it seems the Punjab government is going rethink JV partner Mittal’s demand for incentives & loan now that the project is ~92% complete.
This is prime example of how projects in India work & why it will never achieve the growth that China has – a deal/contract/agreement is never final & as soon as you have committed assets on the ground, you become a hostage to the governments revised deals.
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