Hyderabad-based civil engineer Megha Engineering & Infrastructures (MEIL) has won a $790m contract to build Mongolia’s first ever oil refinery.

MEIL will also build a pipeline and a power plant.

The company said the project marked a turning point in the relationship between India and Mongolia and in MEIL’s hydrocarbons expansion plans.

The refinery will be able to process 1.5 million tonnes a year, reducing Mongolia’s dependence on Russia and boosting economic growth.

The project is a government-to-government deal, and will be financed by Indian government credits.

The project manager is the state-owned Engineers India Limited.

MEIL was founded in 1989 and has since carried out work in 20 countries. It operates in the energy, defence, transport and telecoms sectors.