The company is requesting for about 4,000ha of land for the proposed facility which will have a capacity of 9-15 million tonnes per annum (mtpa).
HPCL is expected to buy the land from the government for an estimated INR 300bn ($6.5bn).
The company is expected to fund the new refinery through internal resources of INR110bn ($2.4bn) and INR100bn ($2.18bn) of loans.
State owned Engineers India has prepared the detailed feasibility report for the new refinery and the state government has already held preliminary discussions with the company.
Construction of the refinery is expected to be completed within four years, subject to the receipt of environment clearance, reports Business Standard.
HPCL has recently been granted about 2,800ha of land by the state government in the same district to set up the Lote Parshuram refinery.
