Tata Power has signed an MoU with BPCL to build 110 kV power infrastructure for BPCL’s Mumbai Refinery. The company announced the deal on Tuesday. Under the Tata Power BPCL deal, the link will serve the refinery’s new PRFCCU unit, which needs 90 MW.
What the Tata Power BPCL deal covers
Tata Power will provide the 110 kV connection and design the related power network. Overall, the work should take about 24 months. Together, the two firms expect to spend about INR2.5bn ($26mn), subject to approvals.
The PRFCCU, a petro resid fluidised catalytic cracking unit, will process 3 mtpa of refinery residue. Moreover, it costs about INR142.03bn ($1.49bn). In fact, it is BPCL’s second-largest project under way and the biggest ever at Mumbai Refinery. It is also the first unit of its kind in India, according to the companies.
Why it matters
As a result, the PRFCCU will turn low-value residue into higher-value products and petrochemicals. Meanwhile, the deal also strengthens Tata Power’s grid in Trombay. Next, Tata Power plans a 400 kV facility there over the next five years. For BPCL’s latest numbers, read our report on its Q2 results.
Sources
- Tata Power (NSE filing): Tata Power Signs MoU with BPCL to Develop 110 kV Power Infrastructure for its Landmark PRFCCU Project at Mumbai Refinery
- The Hindu BusinessLine: Tata Power, BPCL plan INR250-cr power infra for Mumbai refinery project
- The Hindu BusinessLine: Rupee closes marginally up 3 paise at 95.12 against US dollar
