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The Maharashtra government is likely poised to expedite the establishment of an integrated refinery and petrochemical complex in the Ratnagiri district, aiming to progress before the Lok Sabha elections and advocate for its inclusion in the India-Middle East-Europe Economic Corridor.
Deputy Chief Minister Devendra Fadnavis has already asserted that if the proposed refinery doesn’t materialise in the Konkan region, there is a possibility of relocating it to coastal areas in other States such as Kerala or Tamil Nadu. The State government emphasises that if the project doesn’t materialise in Konkan, relocating it to other parts of the State is not feasible, as the location must be in coastal areas.
The ruling alliance of BJP, the Shiv Sena faction led by Chief Minister Eknath Shinde, and the Nationalist Congress Party (NCP) faction led by Deputy Chief Minister Ajit Pawar is set to make the delay in setting up the refinery an election plank.
The refinery project, initially proposed in 2015 in the Nanar region of Ratnagiri, faced protests and was relocated to the Barsu region. However, the project is facing opposition even in Barsu. The Shiv Sena, led by Uddhav Thackeray, which wields significant influence in the Konkan region, opposes the project, citing potential damage to the region’s ecology.
Oil Marketing Companies (OMCs) such as Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) have collectively decided to establish an integrated refinery and petrochemical complex in Ratnagiri. Additionally, two global energy companies, Saudi Aramco and Abu Dhabi National Oil Company (ADNOC), have expressed interest in the project.
According to the Union government, the project has encountered delays due to changes in the plant’s location and the completion of site suitability studies. The Ministry of Petroleum and Gas recently informed the Rajya Sabha that the timelines for completion have not been determined, as the suitability of the site identified by the Government of Maharashtra is yet to be established. The union government has also made it clear that “as on date, this project is not part of the India-Middle East-Europe Economic Corridor”.
The project
According to the blueprint, the project is slated to be established through a 50:50 joint partnership between the Indian consortium, Saudi Aramco, and ADNOC. This joint venture represents the single largest overseas investment in the Indian refining sector.
In 2018, it was decided that this strategic partnership would aim to leverage the combined strengths of the Indian consortium, Saudi Aramco, and ADNOC, encompassing crude supply, resources, technologies, as well as extensive experience and expertise. These oil companies collectively have a well-established commercial presence on a global scale.
The proposed mega refinery is designed to have a processing capacity of 1.2 million barrels of crude oil per day, equivalent to 60 million metric tonnes per annum. The facility will manufacture a variety of refined petroleum products, including petrol and diesel that comply with BS-VI fuel efficiency norms.
In addition to refining operations, the facility will serve as a feedstock source for the integrated petrochemicals complex. This complex is projected to have a capacity of approximately 18 million tonnes per annum for the production of various petrochemical products.
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