Home-grown Megha Engineering and Infrastructures Ltd (MEIL) has secured a $648-million (about Rs 5,400 crore) work order in Mongolia. The order has been awarded by Mongol Refinery State Owned LLC, MEIL said in a statement on Friday.

Share Market Live

NSE

"MEIL has clinched a significant deal in Mongolia. The company received a Letter of Agreement (LOA) for constructing a state-of-the-art crude oil refinery plant valued at $648 million," it said.

In this regard, MEIL hydrocarbons President P Rajesh Reddy and Altantsetseg Dashdavaa, Executive Director, representing the Mongol Refinery State Owned LLC, inked the new project contract at Ulaanbaatar in Mongolia on Friday.

MEIL managing director P V Krishna Reddy along with other senior officials from both countries attended the event. Krishna Reddy said, "MEIL holds a prominent position in the global hydrocarbon sector, with a presence across upstream, midstream, and downstream operations. The new venture marks the company's third foray into the region."

Also Read: Cholamandalam Investment and Finance launches QIP to raise Rs 2,000 crore

The new venture involves the construction of Mongolia's first greenfield Mongol Oil Refinery Project, a significant undertaking.

This Mongol Refinery project is a government-to-government (G2G) initiative. Upon completion, the refinery is expected to produce 1.5 million tonnes of crude oil annually, catering to Mongolia's domestic demand for gasoline, diesel, aviation fuel and LPG.

"The Mongol Refinery is a challenging project, and it is being executed under extreme climatic conditions, with temperatures ranging from (-) 35 degrees C to (+) 40 degrees C," MEIL said.

Hyderabad-based Megha Engineering & Infrastructures Limited (MEIL) is a leading infrastructure company.