‘BPCL’s Bina refinery finally taking shape’

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Mumbai, Sept 23: The Bina refinery project to be implemented by Bharat Petroleum Corporation Ltd (BPCL) in JV with Oman Oil Company Ltd (OOCL) is finally taking shape.

Addressing the 52nd AGM of the shareholders here on Friday, BPCL chairman and MD Ashok Sinha said, “The preparatory stage for the project is currently underway and the project would commence once financial closure is achieved.”

The venture has also received deferment of local sales tax to the extent of Rs 250 crore per annum, along with waiver of central sales tax for a period of 15 years, Mr Sinha said.

The Bina refinery, conceived almost 10 years back, was delayed as environmental clearances from the government of Gujarat were awaited. The same has since then been received after all special leave petitions filed under the Wild Life Protection Act were disposed off by the Supreme Court in favour of the JV, BPCL officials said.

The revised project cost, approved by the government, is Rs 6,354 crore (September 2001 prices) including a foreign exchange component of Rs 2,025 crore.

BPCL and OOCL have each contributed Rs 75.5 crore as their equity contribution in the project, officials said.

The firm has plans to tap the capital market with an IPO offer of Rs 1,000 crore for the Bina refinery in the next two years, Mr Sinha said.