State-run refiners Indian Oil Company (IOC), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) are planning to set up India’s biggest oil refinery. The refinery would come up on the west coast and would price $30 billion (about Rs. 2 lakh crore).

“The 60 million tonnes a year refinery and a mega petrochemical complicated might be set up in petrochemical Products two phases. Section one will probably be forty million tonnes along with an aromatic complex, naphtha cracker and polymer advanced,” Sanjeev Singh, director of refineries at IOC, was quoted as saying by Press Trust of India.

Part one would require an initial investment of Rs. 1.2-1.5 lakh crore and would take about 5-6 years to build it from the time the land is acquired. In accordance with an official quoted by PTI, it might require about 12,000-15,000 acres of land and about three sites on the coast of Maharashtra are being explored for the purpose.

BPCL and HPCL are looking out for a bigger refinery as they face constraints at their Mumbai items.The second section, alternatively, would require an initial funding of about Rs. 50,000-60,000 crore.

Indian Oil wanted to arrange a refinery on the west coast of India in a bid to cater to consumers in South and West because a lot of the refineries are situated in the northern region. Singh said the refinery being located on the west coast has higher significance because it can be simpler to import crude oil from the Middle East, Africa and then ship it to different components of the country.