HPCL’s Visakha Refinery is set for modernisation and expansion at a cost of Rs 26,264 crore. Under the Visakha Refinery Modernisation Project (VRMP), the capacity of the refinery would be expanded from the present 8.3 to 15 Million Metric Tonne Per Annum. The VRMP is scheduled to be completed during the year 2022-23.
The modernisation and expansion project is expected to have multiple benefits and impact, including supply of Bharat Stage-VI-compliant motor fuels. It would also enhance energy security with increased refining capacity and improved refinery complexity and conversion efficiency. The project would generate massive direct and indirect employment during the construction and post-construction phases, thereby leaving a positive impact on Indian industry in general and Andhra Pradesh in particular. There will be a high local component in the project cost as it will nurture and encourage local industry during the project building and post-project phases. It will boost the state’s economy in the form of additional taxes.