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Two killed in accident at RIL’s Jamnagar refinery

Two killed in accident at RIL’s Jamnagar refinery
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First Published: Fri, Jan 09 2009. 01 14 AM IST

Accident zone: Reliance Industries Ltd’s petrochemical plant in Jamnagar. This was the second mishap at the site within a month. Rajan Chaughule / Bloomberg
Accident zone: Reliance Industries Ltd’s petrochemical plant in Jamnagar. This was the second mishap at the site within a month. Rajan Chaughule / Bloomberg
Updated: Fri, Jan 09 2009. 02 23 PM IST
New Delhi: Two people died in an accident late on Wednesday at Reliance Industries Ltd’s (RIL) refinery complex at Jamnagar in Gujarat.
“There has been an accident in the construction area of the RPL refinery at Jamnagar. Two employees were seriously injured in the accident and succumbed to their injuries on their way to hospital,” an RIL spokesperson said in a statement. “All refining-related operations in RIL plant and the recently commissioned RPL refinery continue normally. We are investigating the cause of the accident.”
RPL, or Reliance Petroleum Ltd, is a sister company of RIL.
Accident zone: Reliance Industries Ltd’s petrochemical plant in Jamnagar. This was the second mishap at the site within a month. Rajan Chaughule / Bloomberg
This is the second mishap at the complex in a month. According to an earlier statement by RIL on 8 December, there was a fire in the project construction infrastructure area of the new 580,000 barrels of crude per day refinery.
Replying to an email query on the accident and a possible delay in commercial operations at the new refinery, the same Reliance spokesperson did not comment on analysts’ views that the company would benefit from a delay as refining margins are severely strained and because it can maximize tax benefits if it starts operations from the beginning of fiscal 2010.
The refinery is located in a so-called special economic zone (SEZ)—areas where the government provides fiscal incentives and complete tax breaks for the first five years to promote investments, manufacturing, exports and creation of jobs in specific regions.
“We note that the refinery is yet to commence ‘commercial production’... We expect RPET (Reliance Petroleum Ltd) to start commercial production from 1QFY10E (first quarter of 2010) to take advantage of a full year of 100% Income-tax exemption rather than for a few months in FY2009E at a time of very weak refining margins. We clarify that even one day of operations is counted as a full year for taxation purposes under the SEZ Act,” Kotak Securities Ltd’s analysts Sanjeev Prasad and Gundeep Singh wrote in a report dated 29 December.
‘Mint’ had reported on 7 November that RIL might delay start of commercial operations at its new refinery in Gujarat to early 2009.
(Bhuma Shrivastava contributed to this story.)
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First Published: Fri, Jan 09 2009. 01 14 AM IST