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Thus, nodal agency with a title of Mongolian Refinery (MR) was formed up accordingly. With direct involvement of EXIM Bank of India tendering has been announced among the Indian companies—the ones with big names in the oil and petroleum sector. The Engineers India Limited (EIL) has been selected as a consultant to develop a preliminary feasibility studies report. The EIL has numerous feathers in its cap, including some 5,000 assignments consisting of 400 major projects valued at a capex of more than USD 200 billion. Together as partners, MR and EIL have successfully worked out a time-bound work plan.

In June 2018 the ground-breaking for the first oil refinery was launched in the southern part of Mongolia. The ground-breaking ceremony was attended by Mongolian Prime Minister U. Khurelsukh and Shri Rajnath Singh, Home Minister, Government of India. Since then the basic and detailed project technical reports have been endorsed by the Mongolian side, and local infrastructure like 17.5 kilometers of heavy duty highways, 27 kilometers of railways and 19 kilometers of electricity grid have been constructed. Engineers and technicians to run the refinery have also been started training under various programs.

Tender for EPC1 was announced and JMC (Projects) India Ltd has been selected. Having concluded the necessary agreement, JMC has already commenced its activities on the site. They are going to build an oil refinery over an area of 150 hectares in southern Mongolia’s Dornogovi province. The refinery will have a capacity of processing 1.5 million tonnes of crude per year. When 30,000 barrels per day are exported, the costs will be reimbursed within a span of 10 years with an estimated reserve of 40 years consumption. With dozens of other facilities including a 33 MW power plant, the project is expected to be completed in 2024 and start producing gasoline, diesel and LPG.