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India’s biggest oil refinery that state-run IOC, BPCL, HPCL and EIL plan to set up on the west coast will cost $30 billion or Rs.2 lakh crore, a senior official said.

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New Delhi: The three heavy-weights of the Indian downstream sector -- Indian Oil Corporation , Hindustan Petroleum Corp and Bharat Petroleum – on Wednesday signed a Joint Venture (JV) agreement to create the world’s largest refinery-cum petrochemicals complex at Babulwadi, Taluka Rajpur in Ratnagiri district at the cost of $40 bn and a …

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MRPL awarded Shriram EPC an $18m contract in December 2009 to design, construct and install a cooling tower and cooling water treatment plant for the refinery. In June 2010, Technip was awarded a $30.27m contract for the expansion project.

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Taking this into account, building a complex, hydrocracking, hyrdroskimming, catalytic cracking refinery, can cost anywhere between 5-15 billion USD. The throughput (processing capacity) of this refinery should be between 250-500,000 barrels per day. Oil refining is a difficult business and margins are painfully slim.

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