HPCL, BPCL mull sewage treatment plant

State-run oil companies Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) are planning to jointly set up a desalination plant in Mumbai to meet the requirement of raw water in their refineries.

The two companies have commissioned a feasibility study from Infrastructure Leasing and Financial Services (IL&FS) for the project which is estimated to cost about Rs 300 crore. Both the companies plan to share the cost burden.

Desalinated water is an important component in refineries. The raw water produced from the plant is used in machines to avoid corrosion thus reducing the maintenance cost.

Few years ago, desalinated water came at a high price for refineries, which had to shell out nearly Rs 80 a litre.

Though the cost has come down to about Rs 40-45 a litre, the companies stand to profit from making a one-time investment in the plant.

The building and running of the plant will be handed over to a third party. "We will outsource production to a third party and buy raw water from them," said a BPCL official.

BPCL and HPCL are in talks with Navi Mumbai Municipal Corporation for building and running the plant.