It was in end-2011 when S Roy Choudhury, Chairman & Managing Director of Hindustan Petroleum Corporation, and his team began exploring the idea of a refinery in Rajasthan.

Till then, such a plan was never on HPCL’s radar as the top priority was setting up the Maharashtra Refinery in Ratnagiri. It was getting increasingly clear though that this proposal would be subject to delays due to the sensitive coastal location of the project.

Seeking environmental clearances would take a lot of time and it was very likely that the Maharashtra Refinery would not see the light of day. Yet, HPCL could ill-afford to wait forever especially when it had factored in enhancing overall refining capacity as part of its five-year strategic plan ending 2017.

“We were absolutely clear that we had to meet the growing demand for petro-products in the country and, specifically, the northern region,” Choudhury told Business Line. This was already happening, albeit partially, with the nine million-tonne Bhatinda refinery in Punjab, a joint venture with the Lakshmi Mittal group.

“This was when we decided to seriously look at Rajasthan as a potential location for the next refinery. There was a lot of research done to examine its viability before we decided to take the plunge,” says Choudhury.

The HPCL chief is categorical that the entire effort has been a result of tremendous teamwork. Things began moving at a rapid pace thereafter leading to the foundation laying ceremony of the refinery-cum-petrochemicals complex at Barmer on Sunday. In the process, this will be the country’s first integrated facility which has been so planned to ensure greater profitability.

Rajasthan has been clamouring for a refinery for many years and it was widely thought that Oil and Natural Corporation would meet the requirement. However, with ONGC in no mood to enter this space, a refinery seemed a mirage in the State till HPCL threw its hat into the ring.

According to Choudhury, the business contours have been worked out especially for critical parameters like sourcing water and crude. Most importantly, a market is assured for auto fuels and petrochemicals when the facility is up and about by 2017-18.

“We are determined to make this refinery happen and work has already begun in right earnest,” says Choudhury. The pace is quite remarkable for a company which, for many years, seemed to have lost its way after gifting Mangalore Refinery & Petroleum on a platter to ONGC.

Choudhury does not dwell too much on this chapter even though it continues to be a sore point within the top management at HPCL. After all, the company could have easily bought out its partner’s (the AV Birla group) stake in MRPL and built the business. Today, it is a minority stakeholder instead with ONGC in the driver’s seat.

This setback did cause some inertia to set in post-2000 and it was only after the Lakshmi Mittal group entered the picture some years later did work on Bhatinda get off with a bang. Choudhury believes the same momentum will be seen for the Rajasthan refinery with teams from Bhatinda helping out with critical aspects on project management.

Incidentally, both Bhatinda and Rajasthan will give HPCL an opportunity to supply products to neighbouring Pakistan. All this will, of course, depend on bilateral trade terms becoming a reality soon. As Choudhury puts it, all it takes is a pipeline from Bhatinda to Lahore for Pakistan to get its supply of auto fuels. Will this happen or just remain a pipedream?

 

murali.gopalan@thehindu.co.in

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