Indian Oil eyes West coast for new refinery project.

Country's biggest oil company IOC is looking at setting up a greenfield refinery on the West coast as part of its expansion plans, a top company official has said.

'With the growth in the economy, we see there is a need for green field refinery by 2021-22. After setting up of of Paradip Refinery in East coast, we are now looking at setting up of refinery in West coast region, for which we are looking for suitable state and place,' Indian Oil Corporation Chairman B Ashok told reporters .

The company is also the second largest petrochemical player having 19 per cent market share.

'We have a 19 per cent market share and we are looking at expanding. We see plenty of opportunities and want to be a strong player,' Ashok said.

IOC's Rs 34,555 crore state-of-the-art 15 million metric tonnes per annum (MMTPA) Paradip Refinery would be commissioned in phases from March 2015 onwards, Ashok said.

On cost escalation, Ashok said, the Paradip Refinery was envisaged originally at Rs. 29,700 crore and has now been estimated at Rs. 34,555 crore, which includes certain changes, with the addition of a new power plant.

The refinery is capable for processing a broad basket of crude oil grades, including cheaper high-sulphur heavy crudes, which would help the company improve its bottom-line, he said.

As part of its diversification plan, the company is setting up a polypropylene project having capacity of 680 KTA at Paradip.



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