NEW DELHI, Dec 15 (Reuters) – India is contemplating constructing a quantity of refineries Rather than a single mega plant deliberate with Saudi Aramco (2222.SE) and Abu Dhabi Nationwide Oil Agency (ADNOC), As a Outcome of of challenges in buying land, three supplys Conversant Inside the matter said.

Hurdles in land purchases are Definitely one of many key causes for sluggish infrastructure enchancment in Asia’s third-largest financial system.

Aramco and ADNOC joined a consortium of Indian state-run corporations in 2018 to Arrange a 1.2 million barrels-per-day coastal refinery and petrochemical plant in western Maharashtra, looking for a reliable outlet For his or her oil.

Delays in buying a 15,000-acre land parcel have virtually stalled the enterprise, initially deliberate for 2025, and boosted prices by 36% to $60 billion, as per estimates made in 2019.

“There is a proposal that Instead Of 1 We will Even have three, which is a matter Of dialogue between The corporations involved,” said Definitely one of many supplys.

Makes an try To accumulate land failed As a Outcome of of factors collectively with farmers’ refusal To surrender their land, fearing the enterprise might damage the Ratnagiri area famed for its Alphonso mangoes, cashew plantations, and fishing hamlets.

Aramco and ADNOC personal 25% every Inside the Three method partnership Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), An group named after the area the place the refinery was initially deliberate.

State-run refiners Indian Oil Corp (IOC.NS), Bharat Petpositionum Corp (BPCL.NS) and Hindustan Petpositionum (HPCL.NS) maintain the remaining stake in RRPCL.

“The position of Maharashtra authorities is essential in buying the land,” the supply said.

Maharashtra’s enterprise minister Did not Reply to calls looking for remark. RRPCL chief authorities M. K. Surana and ADNOC Did not supply suggestions, the placeas Aramco final week said: “We’ll reply On the earliest alternative”.

One other supply said ADNOC and Aramco have been Aware of the plan for a quantity of refineries.

“It is good To assemble the refinery at completely different websites if An limitless chunk of land Isn’t out there as Which will reduces funding hazard,” said a second supply.

“Additionally with a quantity of refineries You’ve The pliability to modulate product slate Based mostly on altering product demand pattern,” this supply said.

Reporting by Nidhi Verma
Modifying by Mark Potter

Our Requirements: The Thomson Reuters Notion Guidelines.



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