New Delhi, Feb 6 (PTI) State-owned refiner Hindustan Petroleum Corporation Ltd (HPCL) has received environment clearance for expansion of its Mumbai refinery in Maharashtra, entailing an investment of Rs 3,846 crore.

With the proposed expansion, HPCL said the Mumbai refinery will be able to produce gasoline and diesel meeting Euro IV quality specifications, besides other petroleum products like LPG, Naphtha, Kerosene, ATF, Fuel oil and Sulphur and can meet the current market demands.

The proposal is to expand the refining capacity of Mumbai refinery located in Chembur district from 7.5 million tonnes per annum (MTPA) up to 9.5 MTPA including Propylene Recovery Unit (PRU) and revamp of existing Captive Power Plant (CPP).

“The Environment Ministry has given environment clearance to HPCL’s expansion project subject to compliance of some conditions,” a senior government official said.

The total cost of the project is estimated to be Rs 3,223.43 crore for refinery expansion and PRU and revamping of CPP with a capital investment of Rs 622.45 crore.

All new facilities will be set up within refinery premises of 2.1 acres and the project will be completed within 36 months.

Among conditions specified, HPCL has been asked to impart training to all employees on safety and health aspects of chemicals handling.

It has also been told to set up a separate environmental management cell equipped with full fledged lab facilities for carrying out environmental management and monitoring.

As per the proposal, HPCL’s expansion project will involve integration of facilities for optimisation of energy and resource conservation. Through Mumbai Refinery Expansion Project, production of MS meeting Euro V/VI norms will be made possible.

The proposed project will improve refinery margin and contribute overall development of the region. The proposed PRU project will facilitate production of chemical grade propylene and revamping of existing CPP will ensure self sustainability in power.

This is published unedited from the PTI feed.