Vidarbha Industries Association organized a session on “Advantages of Petroleum Refinery in Vidarbha” today at VIA Auditorium, Nagpur or through zoom.
An expert in Refinery & PetroChemicals Vinayak Marathe, former Sr. Vice President of Reliance Industries Ltd addressed the members and shared the viability and benefits of this project for whole of the central India region. Mr Marathe is having more than 40 years’ experience in Operation, Factory Management, Large green & brown field projects – from technology selection to commissioning, Evaluation, customization & implementation of world class plants. Safety and operation risk management systems, HSE leadership, algai based biofuel, R&D Planning and Strategy. He is graduated from LIT Nagpur in 1979.
Vinayak Marathe said that Refinery & Petrochemical Complex in Vidarbha is Setting the Stage, Refinery in Vidarbha is Business with Social Impact. Two Major considerations for project location is Raw Material availability or near by Product Market locations. He said Inland Refinery will cost 1.5-2.0Billion USD additional Capex for 900 km Crude Pipeline along with Mumbai Nagpur expressway or NHAI This may increase 20-25 cents/barrel additional Opex. But Product movement by pipelines will save additional logistics cost in central India is over 500m USD every year.
Products market location proximity will pay back pipeline Capex in <4 years.Further Economy of scale will compensate the cost due to much higher margins as compared to all coastal refineries. He said most of the Refinery output will be for domestic consumption. Any export requirement can be swapped through the coastal refineries. The complexity of the Refinery will be much higher which will give highest GRM amongst all existing refineries in the country. More than 40% refinery output will go to Petrochemicals. India Petrochemicals demand is projected to increase from current 25MMTPA to 71MMTPA.
He emphasized that refinery is the best source of Raw Material for Petrochemicals. There are 6 refineries inland and 2 more are coming. Small refineries in NE are not considered. There are 10 refineries are near the coast. It is not economical for older refineries to revamp with new technology for clean fuel, larger feedstock for petrochemicals, highest reliability, and digital solutions. Hence the new large refinery is must for India to optimize the fuel prices and remain competitive in petrochemicals production cost. He said configuration of this refinery will ensure that the refinery remains profitable for next 40 years with the realization of all renewable fuel initiatives for road transport such as electric vehicle, bio-fuel and hydrogen. The Construction of refinery can be done in 9-12 months less time than coastal refinery due to minimum construction interruption during rainy season. This accounts for over 2 b USD additional one time profit.
Pollution Management, he said Refinery built with latest technology will be ZERO discharge refinery. In 2008 Central pollution control board announced the revised pollution standards for refineries. In 2012 Central pollution control board announced the revised pollution standards for petrochemical plants. He said the latest technologies for refineries and petrochemicals can meet these standards at no extra capital cost. For existing refineries and petrochemicals plants, especially the older assets, it is a challenge to meet these standards. He said this refinery will keep the environment absolutely clean and additionally create a green belt which will increase the rain in the area. He said petrochemical sector has the potential to generate opportunities for this region. Mr Nitin Gadkari Minister for Highways and MSMEs assured 200 MLD treated water for Refinery on long term basis.
Pradeep Maheshwari, Refinery Project Director & VED Council Member who has taken all the initiative for development of this project for Vidarbha. While sharing his presentation on “Transformation of Vidarbha and Central India Region.” He said Refinery & Petrochemical Complex is the right step to ensure many industrial opportunities for new investments in the region. Such large investments will positively support each and every business. This will recharge economy and have positive social impact like create direct jobs, indirect jobs, attract ancillary units, revival of sick units, boost regional tourism, optimize resource utilization, demand for agri goods. He further said faster clearances from the State and Central Governments and suitable incentives for the proposed Ultra-Mega Project. He further said that most important strengths of Vidarbha is four major ports on equal distance to import and export benefits. MSME Minister already created Dry Ports to ensure best possible support to industry. To Minimise risks in large cities and equal growth opportunities for all Vidarbha and Central India best location for viable, sustainable and profitable manufacturing. Must be promoted by all out efforts.
On this occasion, Shivkumar Rao, President of VED Council and J F Salve, Advisor of Solar Group of Industries, Nagpur also shared their perspectives of petroleum refinery along with techno financial details in our region.
Earlier, Gaurav Sarda, Hon. Secretary- VIA gave an opening remark and also introduced the speakers. Suresh Rathi, President – VIA welcomed Vinayak Marathe, Former Sr. Vice President of Reliance Industries Ltd; Gaurav Sarda, Hon. Secretary- VIA welcomed Shivkumar Rao, President of VED Council; Pankaj Bakshi, Convener – VIA welcomed Pradeep Maheshwari, Refinery Project Director & VP – VED Council and J F Salve, Advisor of Solar Group with floral bouquets.
Suresh Rathi, President – VIA in his welcome address welcomed all the guest speakers and expressed that VIA will provide full support in getting the petroleum refinery for our region. He said it is the most proper time as we see the growth and development in our region shows now, we have a very strong political will as the leader of opposition in Maharashtra Assembly, Devendra Fadnavis, Energetic Energy Minister and our Guardian Minister Dr Nitin Raut and needless to say most vibrant and proactive person our MSME Minister, Nitin Gadkari, who always believed in breaking his own record and many such.
Pankaj Bakshi, Convener – VIA summed up the session and proposed a formal vote of thanks.
Prominently present were Patron & Founder of VIA, Hargovind Bajaj, Prafull Doshi, Past President – VIA; Girdhari Mantri, Chairman – CSR Forum; Girish Deodhar, Chairman – MSME Forum; Ashit Sinha, former VP of VIA; Pradeep Khandelwal, President – BMA; Madhusudan Rungtha, President – MIDC Inds Association Chandrapur, Naresh Jakhotia, Treasurer – VIA; Pankaj Sarda, President of MIDC Inds Association Bhandara; Manisha Bawankar, Chairperson – VIA LEW; Members of the association, industrialists and MSMEs in refinery based smaller projects joined the session.