Central Idea

India and Saudi Arabia have renewed efforts to accelerate the long-pending 60-million-tonnes-per-annum (60 mtpa) west coast mega refinery project, which had faced multiple hurdles.

West Coast Mega Refinery Project

The ambitious project to build a mega oil refinery and petrochemicals facility in Maharashtra’s Konkan belt, with participation from Saudi Arabia and the UAE, was first proposed in 2015.
The project is stipulated to be established at Barsu village in Ratnagiri district of Maharashtra.
IOC, BPCL, and HPCL, had already incorporated a joint venture (JV) — Ratnagiri Refinery & Petrochemicals (RRPCL) — to implement the project.
It faced resistance from locals due to environmental concerns and shifting political equations in the state.
Despite initial agreements and cost estimates of Rs 3 lakh crore, the project failed to take off as foreign partners hadn’t acquired stakes in the joint venture.

Around 15,000 acres of land had to be acquired for the project across 17 villages in the area.
A joint monitoring committee will track the project’s progress, signaling renewed commitment.
India and Saudi Arabia are keen to implement the project, which has earmarked funds of $50 billion.

India is a significant consumer of crude oil, and its demand for petroleum products and petrochemicals is expected to grow substantially.
India aims to increase its refining capacity from 250 mtpa to 450 mtpa, making it a key player in the global oil demand landscape.
For Aramco and ADNOC, the project offers diversification, global expansion, risk mitigation, and access to a major oil market.

Realistic alternatives include scouting for alternative coastal sites in Maharashtra or considering another coastal state.
A more drastic alternative is to split the proposed mega refinery into smaller units.