Aiming at one of the most ambitious projects of the state, the Bharat Petroleum Corporation Ltd (BPCL) entered into a memorandum of understanding (MoU) with the state for a Rs 20,000-crore project. The project would provide direct employment to 10,000 persons and nearly 25,000 persons will get employment indirectly.
The MoU for the Integrated Refinery Expansion Project (IREP) was signed between Chief Minister Oommen Chandy and BPCL chairman R K Singh at the venue of ‘Emerging Kerala’ here on Friday.
“The company has asked for tax waivers from the state. We would provide them loan at a nominal interest instead,” said Oommen Chandy. The state has agreed to extent incentives like deferment of KGST/VAT and CST and exemption of works contract tax for this initiative. “The investment by the BPCL is a revolutionary one in the history of the state and the environmental clearance from the Centre is expected after September 25,” said R K Singh.
The estimated cost of IREP is Rs 14,225 crore and it is scheduled to be completed by December 2015. The IREP envisages increasing refining capacity of Kochi refinery to 15.5 million metric tons per annum (MMTPA) from the present 9.5 MMTPA and modernisation of refinery to produce auto fuel complying with Euro IV and Euro V specifications.
About 1.3 MMPTA of pet coke will be produced along with production of a petrochemical feedstock propylene which is now imported into the country will be another major outcome of IREP project.
The propylene-based petrochemical complex is projected as a joint venture where the JV partner’s technology and marketing expertise will be used.
The BPCL has already signed an MoU with the South Korean petrochemical major LG Chem for the complex at an estimated investment of Rs 5000-6000 crore.