India: Visakha Refinery Set for Rs 262.64bn Modernization and Expansion

The HPCL's Visakha Refinery is set for modernization and expansion at a cost of Rs 262.64 billion. "This is by far a massive industrial project ever in Andhra Pradesh," BJP MP G V L Narasimha Rao said in a statement here on Monday.

Under the Visakha Refinery Modernization Project (VRMP), the capacity of the refinery would be expanded from the present 8.3 to 15 Million Metric Tonne Per Annum. "The VRMP is scheduled to be completed during the year 2022-23," Narasimha Rao said, quoting a reply given by Union Petroleum and Natural Gas Minister Rameswar Teli.

The modernization and expansion project is expected to have multiple benefits and impact, including supply of Bharat Stage-VI-compliant motor fuels. It would also enhance energy security with increased refining capacity and improved refinery complexity and conversion efficiency.

The BJP Rajya Sabha member said the project would generate massive direct and indirect employment during the construction and post-construction phases, thereby leaving a positive impact on Indian industry in general and Andhra Pradesh in particular.

"There will be a high local component in the project cost as it will nurture and encourage local industry during the project building and post-project phases. It will boost the state's economy in the form of additional taxes," Narasimha Rao added.