Lok Sabha Question No. 3188 (UNSTARRED), answered on 2018-12-31
Subject: Setting up of Mega Refinery
Ministry: PETROLEUM AND NATURAL GAS
Asked by: AJAY (TENI) MISRA, RAM CHARITRA, NAGARAJAN P., JANARDAN SINGH SIGRIWAL

## LOK SABHA UNSTARRED QUESTION NO. 3188 TO BE ANSWERED ON 31 st  December, 2018

## Setting up of Mega Refinery

3188.  SHRI AJAY MISRA TENI:

SHRI RAM CHARITRA NISHAD:

SHRI P. NAGARAJAN:

SHRI JANARDAN SINGH SIGRIWAL:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  the  deadline  for  commissioning  of  the  44  billion  mega  refinery  on  the west  coast  has  been  extended  by  three  years  and  if  so,  the  details  thereof  along with the status of land acquisition for the said project and the steps taken by the Government to clear the hurdles in land acquisition;
- (b)  whether  the  Government  proposes  to  open  new  petro  refineries  in  view  of increasing  demand  of  petroleum  products  in  Uttar  Pradesh  and  if  so,  the  details thereof, location-wise;
- (c)  the  total  number  of  oil  refineries  functioning  in  the  country,  refinery/companywise along with total number of by-products being produced while processing the crude oil by the refineries and the total income earned by the refineries by selling these by-products during the last three years, refinery-wise;
- (d) whether the Government proposes to set up new refineries in the country and if so, the details thereof;
- (e) whether the Government has started outsourcing of refining process in the country and received any proposal in this regard and if so, the details thereof along with the criteria fixed for selection of works to be outsourced; and
- (f)  the  extent  to  which  the  working  of  the  refineries  is  likely  to  improve  by  such outsourcing?

## ANSWER

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

## MINISTER OF PETROELUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)    Oil  PSUs  have  identified  land  for  the  integrated  refinery  cum  petrochemical complex in Maharashtra in consultation with Government of Maharashtra. Maharashtra Industrial Development Corporation (MIDC) has started the process of land acquisition.  However, there is opposition from certain quarters of society for the land acquisition.  Ministry of Petroleum & Natural Gas has written to Government of Maharashtra to expedite the land acquisition.

(b) Public Sector Oil Marketing Companies namely Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited have  informed  that  they  have  no  plan  to  set  up  a  new  refinery  specifically  for providing petroleum products to Uttar Pradesh. The demand for petroleum products in Uttar Pradesh is being met by existing refineries at Mathura, Panipat, Barauni, Bina etc.

(c) The products of the Refineries after processing of crude depend on configuration of  the  refineries  including  design  and  capacity  of  primary  and  secondary  units.    In general, products like LPG, Petrol, Diesel, Naphtha, Kerosene, etc., are produced by most of the refineries depending on techno-commercial considerations. Details of the total number of oil refineries functioning in the country is at Annexure-I and the total income earned by the Oil PSUs refineries during the last three years, refinery-wise is at Annexure-II.

(d)    Government  has  granted  revised  approval  on  09.10.2017  for  setting  up  of  9 MMTPA Grass-root Refinery-cum-Petrochemical Complex by HPCL in Joint Venture with Government of Rajasthan at Pachpadra in Barmer district of Rajasthan.

(e) & (f) Generally, the main refining process by Public Sector Refineries is done on their own. However, depending on techno-commercial considerations, offsites, power and utility  systems,  effluent  treatment  plants,  hydrogen  generation  and  supply,  etc., are outsourced in some of the refineries.

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## Annexure-I

## Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 3188 to be answered on 31.12.2018

|   Sr. No. | Refinery Location             | Name of the Company                           |
|-----------|-------------------------------|-----------------------------------------------|
|         1 | Guwahati, Assam               | Indian Oil Corporation Limited                |
|         2 | Barauni, Bihar                | Indian Oil Corporation Limited                |
|         3 | Koyali, Gujarat               | Indian Oil Corporation Limited                |
|         4 | Haldia, West Bengal           | Indian Oil Corporation Limited                |
|         5 | Mathura, U.P                  | Indian Oil Corporation Limited                |
|         6 | Digboi, Assam                 | Indian Oil Corporation Limited                |
|         7 | Panipat, Haryana              | Indian Oil Corporation Limited                |
|         8 | Bongaigaon, Assam             | Indian Oil Corporation Limited                |
|         9 | Paradip, Odisha               | Indian Oil Corporation Limited                |
|        10 | Mumbai,Maharashtra            | Hindustan Petroleum Corporation Limited       |
|        11 | Visakhapatnam, Andhra Pradesh | Hindustan Petroleum Corporation Limited       |
|        12 | Mumbai, Maharashtra           | Bharat Petroleum Corporation Limited          |
|        13 | Kochi, Kerala                 | Bharat Petroleum Corporation Limited          |
|        14 | Manali, Tamil Nadu            | Chennai Petroleum Corporation Limited         |
|        15 | Nagapattinam, Tamil Nadu      | Chennai Petroleum Corporation Limited         |
|        16 | Numaligarh, Assam             | Numaligarh Refinery Limited                   |
|        17 | Mangalore, Karnataka          | Mangalore Refinery and Petrochemicals Limited |
|        18 | Tatipaka, Andhra Pradesh      | Oil and Natural Gas Commission                |
|        19 | Bina, Madhya Pradesh          | Bharat Oman Refinery Ltd.                     |
|        20 | Bathinda, Punjab              | HPCL Mittal Energy Ltd.                       |
|        21 | DTA-Jamnagar, Gujarat         | Reliance Industries Limited                   |
|        22 | SEZ, Jamnagar, Gujarat        | Reliance Industries Limited                   |
|        23 | Vadinar, Gujarat              | Nyara Energy                                  |

## Annexure referred to in reply to part (c) of Lok Sabha Unstarred Question No. 3188 to be answered on 31.12.2018

1. Total  realization  to  IOCL  refineries  on  account  of  on  transfer  petroleum  and petrochemical products at Refinery Transfer Price (RTP) from 2015-16 to 201718 in Rs. Crore is:-
2. Overall Gross Refining Margin earned by BPCL Refineries:-

| Transfer of Products, Rs. Cr   |   2015-16 |   2016- 17 |   2017- 18 |
|--------------------------------|-----------|------------|------------|
| Guwahati                       |      3903 |       3976 |       4872 |
| Barauni                        |     19466 |      18663 |      20072 |
| Gujrat                         |     37923 |      37506 |      45164 |
| Haldia                         |     20521 |      20024 |      23657 |
| Mathura                        |     26210 |      26968 |      31161 |
| Digboi                         |      2058 |       2101 |       2812 |
| Panipat                        |     53430 |      54819 |      66825 |
| Bongaigoan                     |      8147 |       8513 |       9328 |
| Paradip                        |      1910 |      19842 |      36550 |
| Total                          |    173568 |     192412 |     240440 |

(Figs. In Rs. Crs.)

|                 |   2017-18 |   2016-17 |   2015-16 |
|-----------------|-----------|-----------|-----------|
| Mumbai Refinery |      5023 |      3671 |      4198 |
| Kochi Refinery  |      4333 |      3061 |      3610 |

3. Total Income Earned (last three years) pertaining to HPCL refineries:

HPCL's Gross Refining Margins

($/bbl)

| F. Y.     |   Mumbai Refinery |   Visakh Refinery |   AverageGRM |
|-----------|-------------------|-------------------|--------------|
| 2015-2016 |              8.09 |              5.46 |         6.68 |
| 2016-2017 |              6.95 |              5.51 |         6.2  |
| 2017-2018 |              8.35 |              6.55 |         7.4  |

4. Total Sales Turnover and Profit After Tax (PAT) for NRL:
5. Revenue and Profit After Tax (PAT) in last 3 years of MRPL:-
6. Total revenue of CPCL in the last three financial years:-

| Parameter                 | 2015-16   | 2016-17   | 2017-18   |
|---------------------------|-----------|-----------|-----------|
| Sales Turnover (Rs Crore) | 11,923    | 13,945    | 15,922    |
| PAT (Rs Crore)            | 1,222     | 2,101     | 2,045     |

| (Rs. Cr)   |   2015-16 |   2016-17 |   2017-18 |
|------------|-----------|-----------|-----------|
| Revenue    |     50864 |     59415 |     63067 |
| PAT        |      1148 |      3644 |      2224 |

(Rs. ` in Crores)

| Financial Year   | Manali Refinery CBR   | Manali Refinery CBR   |   Refinery |
|------------------|-----------------------|-----------------------|------------|
| 2017-18          |                       | 43219.37              |     915.44 |
| 2016-17          |                       | 39351.66              |    1234.24 |
| 2015-16          | 33781.74              |                       |    1171.67 |