The proposed refinery and petrochemical complex in Nagpur region will provide huge savings compared to Ratnagiri in terms of savings in recurring freight costs, logistics cost, large consumer base, employment generation and save foreign exchange. “The proposed 60 MMTPA refinery, petrochemical complex (RPC) should be set up near Nagpur in the interest of nation,” said Pradeep Maheshwari, Strategist Natural Resources.

Maheshwari said that the benefits and advantages far outwieght the disadvantages as Nagpur region is a better location as compared to Ratnagiri. He explained that from decades Central India is getting its petroleum requirements by rail from long distance coastal areas by paying huge freight cost on recurring basis. With Mumbai Nagpur Expressway crude pipeline can bring crude at 50 paise in place of finished fuel coming from refinery to pumps via depot at Khapri at Rs 6 per litre. There is 15 MMTPA fuel consumption in 400 km radius mean savings of Rs 7,500 crore.

About 18 large and small steel plants, 32 cement plants, 500 MMTPA mining in 400 km radius, thousands of trucks passing from Nagpur due to its central location, 1 MMTPA polyester plant are some of the strengths that justify large RPC near Nagpur. Savings of logistics costs by effective use of created national highways and expressways the Gati Shakti Plan clearly states that cost of logistics in manufacturing must be brought down from present 15-16% to 7-8%.

“We can export surplus production spared by this proposed RPC near Nagpur. We can cut imports of speciality chemicals, bitumen, LPG, PTA, MEG, CPVC, CPC, artificial rubber etc. This would provide huge savings of forex,” he added. With this RPC at Nagpur, the Government can plan strategic reserves for crude and finished petroleum products. With location advantage and good rail, air and road connectivity petroleum products can be sent to borders in minimum possible time, he said.