November 29, 2017
NEW DELHI: Former chairman of Indian Oil Corporation BSE 0.83 % B Ashok has taken over as the first CEO of the company that's setting up the world's biggest refinery on the west coast.
Ashok retired from Indian OilBSE 0.83 % six months ago after serving as its chairman and managing director for three years, during which the idea of setting up the 60 million tonnes refinery on the Maharashtra coast was conceived.
Prompted by the government, Indian Oil, Bharat Petroleum BSE 1.90 % and Hindustan Petroleum BSE -0.69 % have come together to build a 60 million tonnes per annum refinery-cum-petrochemicals complex in Ratnagiri district at a cost of 3 lakh crore. Indian Oil owns 50% while HPCL BSE -0.69 % and BPCL BSE 1.90 % have 25% each in the joint venture company - Ratnagiri Refinery and Petrochemicals Ltd (RRPL) - formed to set up the refinery. Oil giant Saudi Aramco is keen on investing in the proposed mega refinery and is in discussion with state oil firms for this.
"It will be a great project, and do wonder for the industry and the country," Ashok said. "Technical configurations are being finalised. And the process of land acquisition is underway."
The state government has identified the land in Babulwadi in Ratnagiri district for the project. A parcel of 14,000 acres would house the main refining complex and another 1,000 acres for storage and port facilities.
Ashok's immediate tasks would be to build a team, finalise configuration, and ensure smooth land acquisition for the project. Most hires for the joint venture company would come from outside Indian Oil, HPCL or BPCL, Ashok said.
Once the technical configuration is finalised, the company would begin discussion on equipment and service supplies with vendors.
The refinery-cum-petrochemicals complex, expected to be ready by 2022, would produce Euro-VI grade transportation fuels. It will have the flexibility to process a wide spectrum of light and heavy crude oil grades.
The refinery is expected to meet future fuel demand increase in the country.