Bengal signs MoU with CALS Refineries Ltd for mega projects

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Kolkata, Mar 19 (UNI) CALS Refineries Ltd today signed an MoU with the Haldia Development Authority (HDA) and West Bengal Industrial Development Corporation (WBIDC) to facilitate handing over of land and other incentives for installation of their 5 MMTPA Refinery Project at Haldia.

The investment for the current phase of the refinery project will be about Rs 4000 crore. It would be commissioned by the first quarter of 2010.

The project is expected to generate direct/indirect employment for some 1500 people.

Chief Minister Buddhadeb Bhattacharjee stressed the importance of the MoU for the state and lauded the CALS Refineries for investment.

He reaffirmed the support of the government for future expansion plans of the company in increasing their capacity to 10.0 MMTPA by the end of 2010 and further to 20 MMTPA by 2013.

CALS Refineries Ltd., has already spent around Rs 360 crore towards payment of equipment supply, basic engineering and initial project enabling work. Site activities would commence by this April and shipments of equipment were expected to arrive at Haldia by this July onwards.

The current phase of the refinery will be implemented by transplanting main process units and equipment from Bayernoil Refinery at Ingalstadtt, Germany, and supplementary units from Petro Canada Refinery at Edmonton, Canada. The balance utilities and off site facilities will be supplied and erected indigenously.

Both the refineries are presently operating as per stringent local environmental and operational standards. The refinery process units are designed by internationally renowned process licensing companies such as UOP-USA, Snamprogetti-Italy, Lurgi-Germany, Amoco-USA and Foster Wheeler-USA and all the licenses shall be transferred to CALS Refineries Ltd for operation of plant at Haldia.

The refinery project is being implemented with the involvement of international consultants&contractors like M/s Ventech Engg- USA, Mott MacDonald-UK, Lohrmann International-Germany, KBC advanced Technologies - UK and Chemtex - USA.

The project will be in 3 phases.

In the first phase Rs 400 crore to be spent for 5 mmtpa production capacity and another Rs 400 crore for land acquisitition.

The refinery will produce various grades of petrol, diesel, naptha, LPG etc.

In second phase Rs 400 crore to be invested for 5 mmt per year production capacity and another Rs 500 crore land.

The third phase was for Greenfield Project at Nayachar and once the infrastructure was ready another Rs 12,000 crore would be spent.

Altogether Rs 20,000 crore to be invested in phases and about 8000 job opportunity would be created in these projects.

Commerce and Industries Minister Nirupam Sen said this was an important project both in terms of providing feedstock and refinery.

CALS Refineries Ltd is BSE listed company with Spice Energy as its strategic investor. R P Capital, UK and Dubai Investment group have participated in equity contribution as Institutional investors.

CALS Refineries Ltd. is operated by a Board of Directors consisting of eminent and experienced professionals headed by Mr M S Ramchandran (ex- Chairman cum Managing Director of Indian oil Corp.) as Chairman.

The MoU was signed in the presence of Mr Bhattacharjee, Mr Nirupam Sen, his department's principal secretary Sabyasachi Sen, HDA's chairman Lakshman Seth, WBICD's managing director M V Rao, Mr Parwez Ahmed Siddiqui, CEO, Haldia Development Authority (HDA) and Mr Manabendra Guha Roy, CEO, CALS Refineries Ltd.

UNI PC PL BJR KN1812

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