Lok Sabha Question No. 6 (STARRED), answered on 2015-11-30
Subject: Greenfield Crude Oil Refinery
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SRINIVAS KESINENI

LOK SABHA STARRED QUESTION NO.6 TO BE ANSWERED ON 30 TH  NOVEMBER, 2015

## GREENFIELD CRUDE OIL REFINERY

- *6. SHRI KESINENI NANI:

पैट्रोलियम और प्राक ृ लिक गैस मंत्री Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a) whether the Andhra Pradesh Reorganisation Act,2014 envisages setting up of Greenfield crude oil refinery and petrochemical complex in the State and if so, the details thereof: (b) whether the feasibility of the same has been examined and if so, the details thereof; (c) whether the location and proposed capacity of the refinery has been finalised; and

- (d) if so, the time by which it is likely to be commissioned ?

ANSWER पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) (श्री धमेन्द्र प्रधान) MINISTER OF  STATE (INDEPENDENT  CHARGE)  IN THE MINISTRY OF

PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) to (d):  A statement is laid on the Table of the House.
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## STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (D) OF LOK SABHA STARRED QUESTION NO. 6 BY  SHRI KESINENI NANI  TO BE ANSWERED ON 30 TH  NOVEMBER, 2015 REGARDING GREENFIELD CRUDE OIL REFINERY

(a)    Andhra  Pradesh  Reorganization  Act,  2014  envisages  setting  up  of  Greenfield crude oil refinery and petrochemical complex in the State of Andhra Pradesh. As per AP Reorganization Act, 2014,

'IOCL or HPCL shall, within six months from appointed day, examine the feasibility of  establishing  a  green  field  crude  oil  refinery  and  petrochemical  complex  in  the successor state of Andhra Pradesh and take an expeditious decision there on'.

(b) Hindustan Petroleum Corporation Ltd. (HPCL) along with Gas Authority of India Ltd.  (GAIL)  carried  out  a  prefeasibility  cum  configuration  study  for  15  MMTPA integrated refinery cum Petrochemical complex and also a standalone Petrochemical complex. The financial appraisal of the selected integrated/standalone Petrochemical complex cases has been carried out and financial results presented to Government of Andhra Pradesh (GoAP) for deciding the incentive package.  In the two scenarios considered, the IRR was very low, which required very large Viability Gap Funding (VGF) by GoAP.  Considering the huge VGF, It was advised by GoAP to carry out a detailed feasibility study of the Standalone Petrochemical Complex in order to firm up the required incentive package for the project. It was also advised to carry out the market study of Petrochemicals alongside Detailed Feasibility Report (DFR).

GAIL & HPCL is carrying out DFR for Standalone Petrochemical Project in Andhra Pradesh  along  with  market  study  for  petrochemicals  which  is  to  be  completed  by June, 2016.

(c) About 2,000 acres of land had been sought by HPCL for the project. Government of GoAP offered three sites, namely Nakkapalli cluster near Visakhapatnam, within Kakinada SEZ in East Godavari district under GMR possession and at Machilipatnam. Site selection Study has been completed for the 3 sites offered by GoAP. The decision on the site depends upon  the completion of DFR & cost of land.

(d)  The  Project  schedule  depend  upon  the  completion  of  the  DFR  and  Financial appraisal of the Project and subsequent approvals. After necessary approvals, about 48 months are required for achieving mechanical completion of the project.

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