RATNAGIRI REFINERY – ECONOMY

News: The protests against the refinery project in Maharashtra

 

What's in the news?

       Maharashtra government started conducting soil testing at Rajapur tehsil’s Barsu village in the coastal Ratnagiri district to know if the site was suitable for the proposed multi-billion-dollar Ratnagiri Refinery and Petrochemicals Limited (RRPCL) project which is touted as the world’s largest single location refinery complex.

 

Key takeaways:

       As of April 2022, India’s oil refining capacity stood at 251.2 million metric tonnes per annum, making it the second-largest refiner in Asia and the fourth largest in the world.

 

Barsu Refinery Project:

       The project is expected to have a capacity of 60 million tonnes per annum.

       It is a joint venture between Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited. 

       Saudi Aramco and ADNOC, as per an agreement signed in 2018, hold a 50% stake. They also agreed to jointly build and develop the refinery and petrochemicals complex.

       Besides fuel, the project also proposes to develop various downstream petrochemicals to meet India’s fast-growing petrochemical demand.

       Initially, the project was supposed to come up at Nanar, about 20 kilometres from Barsu. However, due to strong opposition from the locals, environmental activists and the Shiv Sena, the project was denotified in 2019.

 

Protest by Villagers:

       Hundreds of residents from Barsu-Solgaon and neighbouring villages are protesting the government’s decision as they are concerned about the potential impact on the environment and the livelihoods of local communities.

       The project site is in a region that is ecologically sensitive, with several species of flora and fauna endemic to the area.

       The Konkan region has large mango orchids as well as jack fruit and cashew plantations. The project would require 6,200 acres of land from 14 villagers – 12 in Ratnagiri and two in neighbouring Sindhudurg districts.

       The villagers also expressed concern about the potential health hazards posed by the refinery and petrochemical unit, which is expected to emit a large amount of pollutants.

       According to locals, Konkan already suffers from air pollution due to the presence of coal-fired power plants.