BPCL signs MoU for expansion of Kochi refinery

Bharat Petroleum Corporation Ltd. (BPCL) has signed a memorandum of understanding (MoU) with the state of Kerala, India, in what is considered one of the most ambitious projects in the state. When fully operational, the Rs20,000 crore (US$3.7 billion) project would provide direct employment to 10,000 people and indirect employment to almost 25,000.
Oommen Chandy, chief minister for the state, signed the MoU for the Integrated Refinery Expansion Project (IREP), while BPCL Chairman R. K. Singh signed for the refiner; although BPCL requested tax waivers from the state, the state government agreed instead to provide the company loans at a nominal interest. According to Chandy, the state also agreed to extend incentives such as deferment of KGST/VAT and CST, as well as exemption of works contract tax.
The MoU provides for the integrated expansion of the Kochi refinery with an investment of Rs14,000 crore (US$2.6 billion). The project would raise the refinery’s capacity from 9.5 metric tons per annum (MTA) to 15.5 MTA, which would make it the largest public sector refinery in the country. The expansion project is to be commissioned by 2015-16. (September 15, 2012)