The Rs 35,000-crore Paradip refinery of Indian Oil Corporation, which will be dedicated to the nation by Prime Minister Narendra Modi next month, will switch over to production of BS-VI compliant fuels within the deadline set by the government, a top official said today.
The inauguration of the long-awaited 11th refinery of IOCL is slated for February 7.
"From day one, Paradip refinery will produce motor spirit and high speed diesel of BS-IV quality and will switch over to BS-VI quality auto fuel to comply with the timelines set by the government," IOCL's Director (Refineries) Sanjiv Singh told reporters here.
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Oil PSUs are expected to invest Rs 28,750 crore to switch over to BS-VI auto fuels.
The Paradip project will help to meet the burgeoning energy demand, he said, adding that for better profitability the refinery is designed to process 100 per cent high-sulphur, including 40 per cent heavy crude oil, of low cost.
Using state-of-the-art technology, the refinery would produce various petroleum products like petrol, diesel, kerosene, aviation turbine fuel, propylene, sulphur and petroleum coke, Singh said.
Paradip refinery has a unique INDMAX unit technology, which has been developed by Indian Oil scientists and engineers, he said, adding that it is designed to produce 44 per cent LPG, highest from such plants.
The commissioning of INDMAX unit at Paradip, with capacity of 4.17 million metric tonnes per annum, marks a major milestone in the history of Indian refining.
With this technology, Indian Oil is now recognised globally as a technology supplier.
Implementation of INDMAX technology is Indian Oil's "true tribute to the Make in India initiative", said Singh.
For further value-addition, a 700 KTA capacity polypropylene plant based on propylene recovered from cracked LPG generated from INDMAX plant is under implementation at an approved cost of Rs 3,150 crore and is scheduled for completion by 2017-18, he said.
The refinery also has plans to set up an ethylene recovery unit/mono-ethylene glycol at an estimated cost of Rs 3,800 crore. These units are expected to be completed by 2020-21, he said.
Stating that refinery was a low margin business, Singh said the tax incentive involving deferment of VAT payment by 11 years provided by Odisha government would benefit the company in a significant manner.
Several first-time technological features like flue
gas desulphurisation facilities and vapour recovery system from jetty loading are the hallmark of Paradip refinery that will ensure environment-friendly operation, Singh said.
Indian Oil is also evaluating the options of setting-up manufacturing facilities for Para-Xylene, PTA and synthetic ethanol at Paradip.
Subject to techno-commercial viability, these facilities may be installed in the next five to seven years, he added.
While a jetty has been built for movement of consignments, LPG import terminal is also being constructed to meet the growing demand of cooking gas, and pipelines are being laid to connect cities like Rapiur, Ranchi and Hyderabad.
As the area is cyclone-prone, the refinery structure has been designed to withstand super cyclone-like disasters. Cyclone Phailin of October 2013 and Hudhud of 2014 failed to cause any damage to the structure, Singh said.
He said Paradip refinery will accelerate economic and infrastructural development in and around the area, besides acting as a gateway for opportunities in eastern India.
It is among the most advanced refineries in the world and will serve as a catalyst for energising the industrial and economic development of the entire region in the long run, said Singh.
Regarding capacity enhancement and growth, he said refining capacity in the country stands at around 230 million metric tonnes, which is higher than the estimated consumption of about 165 million metric tonnes.
However, with consumption growing by 13 to 14 per cent annually, efforts are on to raise refining capacity in order to meet the increased requirement, he added.
