BPCL signs MoU for Rs20,000 crore expansion of Kochi refinery
15 September 2012
In what is billed as one of the most ambitious projects in Kerala, the Bharat Petroleum Corporation Ltd (BPCL) has signed a memorandum of understanding (MoU) with the state for a Rs20,000-crore project that would provide direct employment to 10,000 persons and indirect employment to nearly 25,000 persons.
The MoU for the Integrated Refinery Expansion Project (IREP) was signed by chief minister Oommen Chandy for the state and BPCL chairman R K Singh for the refiner at the venue of the 'Emerging Kerala' event in Kochi yesterday.
The company had asked for tax waivers from the state, but the state government had agreed to provide loans at a nominal interest instead Chandy said. The state had agreed to extend incentives like deferment of KGST/VAT and CST and exemption of works contract tax for the initiative.
According to Singh, the investment by BPCL was a revolutionary one in the history of the state and the environmental clearance from the centre was expected after 25 September.
BPCL had signed licence agreements with four technology providers for its integrated refinery expansion in Kochim and had also tied up with a technology provider for the petrochemicals complex.
The integrated expansion project, involving an investment of Rs14,000 crore, was expected to be granted environmental clearance within a month, Singh said.