Adani Group and Indian Oil Corporation (IOC) are in talks to form a joint venture for the proposed Mundra Refinery project.
The proposed 15 million tonne per annum (tpa) refinery at Mundra is expected to come up with an investment of Rs 30,000 crore.
Adani has held initial talks with IOC and offered around 3,500-4,000 acre of land for the project. In exchange, Adani is keen to get a minority stake in the project that may be equivalent to the price of the land.
While IOC is keen to set up an export-oriented refinery on the western coast, the deal will also mark the entry of Adani Group into the crude oil refining business.
IOC has 10 refineries with a combined capacity of 65.7 million tpa, which accounts for 31 per cent of India's domestic refining capacity. The company aims to increase its refining capacity to 100 million tpa by 2021-22.
Its 15 million tpa refinery project at Paradip, in Odisha, is nearing completion and the company is looking forward to starting work on its next project on the western coast.
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