While there is a lot of buzz surrounding the 27 million tonnes refinery of RIL at Jamnagar, another company is quietly building a refinery almost as big as the RIL refinery. This is Spice Energy's venture at Haldia called Cals Refineries.
“The first phase of the Cals Refineries will be ready by 2010 and another 5 MTPA will be ready after a year's time,” said Ravi Chilukiri, Group CEO, Spice Energy.
Its not just setting up a refinery but an assured supply of crude as well as an assured off take of the product also matters. Cals Refineries seems to have its plans in place.
“We have tied up for crude supply with BP and also 65 per cent of the product will be exported and rest will be sold in India,” said Chilukiri.
Cals Refineries may have laid low but the groundwork for the mega project was being quietly put in place including Rs 7000 crore funds for which the Company will have an FPO of Rs 1000 crore. It may also raise the fund by FCCB. Another Rs 2500 crore will come through debt for which SBI Caps has already been appointed as the banker
Lot has been talked about making India as a refining hub and along with RIL, IOC, HPCL and Essar, Cals refinery will help in making the dream true for India. What is more important for the refinery is that everything from the crude supply to product off-take is in place.