The company on Wednesday signed a memorandum of understanding (MoU) with the Haldia Development Authority and the West Bengal Industrial Development Corporation to facilitate handing over of land for installation of its five million tonnes refinery project in the first phase. The product profile includes naphtha which would be bought by Haldia Petrochemicals, besides, various grades of petrol, diesel and liquefied petroleum gas (LPG).

The first two phases will entail an investment of Rs. 4,000 crore each and a capacity of five mtpa each. Each will require 400 acres, of which the first tranche has been acquired and the second is to be acquired.

The final phase with a capacity of ten million tonnes annually and an investment of Rs. 12,000 crore is proposed to be set up on 800 acres on the PCPIR, which is slated to come up at Nayachar, once the infrastructure gets readied there. The company said it had already spent around Rs. 360 crore towards equipment supply and would commence site activities by April.

Chief Minister Buddhadeb Bhattacharjee said this project was significant for the State especially in view of the proposed PCPIR project. About 8,000 people would get direct employment once all the three phases got operational. The first two phases would get completed by 2010 and the expansion by 2013.

A company release said the current phase of the refinery would be implemented by transplanting main process units and equipment from Bayeroil Refinery in Germany. Former Indian Oil Chairman M. S. Ramachandran is the Chairman of CALS Refineries.