Hindustan Petroleum Corp (HPCL) plans to invest Rs 30,000 crore to set up a 16 million tonnes per annum refinery on the western coast of India. HPCL is likely to set up the new refinery in Raigad district of Maharashtra, to relocate its Mumbai refinery. The Maharashtra government has offered three sites between Ratnagiri and Raigad for the refinery & the location is expected to be finalised in the next few weeks. The new refinery is planned to make up for space constraint that HPCL faces at its Mumbai refinery at present, which will make the unit inefficient in a few years time. The Mumbai refinery may eventually be shutdown once the new refinery is built.

A consultant for doing detailed feasibility report (DFR) will be appointed in one month. The unit, called Maharashtra Refinery, is expected to be completed in 48 months from the date of receiving all approvals. The refinery project is likely be funded in a debt-equity ratio of 2:1 or 2.5:1.