Apprehensions over relocation of US refinery

Apprehensions over relocation of US refinery
By SNV Sudhir
Visakhapatnam, Nov 22, 2011: Apprehensions and objections are being raised over the proposed relocation of an oil refinery from US to Vizag. . The state government has signed a MoU with a private company, Amerind Petroleum Corporation, promoted by a Hyderabad-based industrialist to dismantle a running oil refinery near New York in the US and relocate it near Vizag at a cost of Rs. 11,136-crore. “There are around 11 refineries which are left idle there in US due to lack of demand for gasoline. I think this is one of them. There are also some refineries in US which were fined very heavily for emissions more than the stipulated standards. I fear this refinery is one among them,” said Movement for People Centric Development, convenor Prof K Babu Rao.
The work of shifting and relocating will be handled by American Industrial Corporation (AIC) which is a member of a 14-company US consortium. Once the approvals are issued, the refinery will be set up and operated within 36 months. Talking to this correspondent, Prof Rao said that AIC was not having any experience in oil refinery business and it mainly deals with old plants in a way it does ‘scarp’ business. He also raised apprehension over EPTRI preparing Environment Impact Assessment (EIA) report. According to Prof Rao EPTRI is not a competent authority to prepare EIA reports for such big companies. “EPTRI doesn’t have experts on its board. They hire people. It is neither competent nor capable of preparing EIA reports,” said Prof Rao.
Refinery by Amerind Petroleum Corporation would be the first venture being launched in Petroleum, Chemicals and Petro-chemicals Investment Region (PCPIR). PCPIR is being developed over 6,000 sq km area along the coast between Visakhapatnam and Kakinada ports. In phase I refinery would produce 1.5 lakh barrels of products like petrol, high speed diesel, and aviation fuel, LPG meeting Euro IV standards and set up its own 3,500 retail outlets. Former Energy secretary EAS Sarma observed that Vizag industrial cluster has been identified by Central Pollution Control Board as one among the few highly polluted industrial clusters in the country. “MOEF has placed an embargo on addition of new industries in this area. The region cannot bear any pollution load from PCPIR,” added Sarma. Under phase II refinery would be expanded to a capacity of15 million tonnes at a cost of Rs. 8611 crore.