KRL to commission Rs 800 cr project in 3 months

Kochi, June 24: Union Petroleum and Natural Gas Minister Murli Deora today said Rs 800 crore single-mooring project of Kochi Refineries Ltd (KRL) would be commissioned in the next three months.

Addressing a gathering after the foundation stone laying ceremony of Capacity Expansion-cum-Modernisation Project (CEMP) of Bharat Petroleum Corporation Limited's - KRL here, Mr Deora said the project would enable import of crude oil through Very Large Crude Containers (VLCC).

Through the expansion programme, the capacity of the KRL was being increased to 9.5 million metric tonnes per annum (MMTPA) from the existing 7.5 MMTPA at a cost of Rs 2,500 crore, Mr Deora said.

''KRL will invest around Rs 3,500 crore in the next two to three years and this will not only lead to creation of direct and indirect jobs but also boost industrial activity in the state,'' he added.

The CEMP, which would be completed by September 2009, had twin objectives of improving the quality of fuels to meet the Euro III and Euro IV norms and enhancing the refining capacity to meet increased product demand.

As part of the Oil Ministry's effort to improve the oil security of the nation, the Centre was giving importance to refinery expansions, the Minister said.

The Centre was also planning to introduce bio-fuels, especially Ethanol Blended Petrol (EBP) across the country, he noted.

As part of the Centre's measures to protect the consumers from the impact of soaring global prices, the government and the oil companies were together sharing 87 per cent of the burden of under-recoveries caused by the high oil prices this year, Mr Deora added.

Speaking at the function, Kerala Chief Minister V S Achuthanandan urged KRL to revive the 500 MW power project proposed by the refinery.

''The government will give all support to the refinery to execute the project,'' he said.

Mr Achuthanandan said his government was making all efforts to make the state investor friendly and keen to sit with the investors and sort out their problems.

He said with the initiative of the state government, the labour problem in Cochin Port Trust was amicably solved and the joint venture between TELK and NTPC, which was signed yesterday, was a testimony of the government's commitment for industrial growth.

UNI