New Delhi, Nov. 15: Hindustan Petroleum Corporation Ltd (HPCL) plans to pick up a 25 per cent stake in the $30-billion refinery to be set up on the west coast.
Indian Oil will have a 50 per cent stake in the country's biggest oil refinery, while the remaining 25 per cent will be with Bharat Petroleum Corporation.
"The HPCL board at its meeting today decided to participate in the 60-million-tonnes (mt) a year refinery in Maharashtra. We intend to put in 25 per cent equity. We are open to getting a strategic partner but that will be decided later. For now, we have decided to participate in the project with a 25 per cent stake," its chairman Mukesh K. Surana said today.
The refinery and a mega petrochemical complex will be set up in two phases. The first phase will be a 40mt unit along with an aromatic complex, naphtha cracker and polymer complex. This will cost Rs 1.2-1.5 lakh crore and will come up in 5-6 years from the date of land acquisition.
The complex will require 12,000-15,000 acres and 2-3 sites on the coast of Maharashtra are being explored. "We have so far not finalised the land. Talks are on," the HPCL chairman said. The second phase, involving a 20mt refinery, will cost Rs 50,000-60,000 crore.
HPCL will raise Rs 6,000 crore through bonds within a year to fund the expansion of its refineries and pipeline, Surana said, adding the board has approved the fund-raising plan.
Theproceeds willhelpthe company to expand its refineriesin VizagandMumbai,theproposedLPG bottlingplantsandsomefuelpipelines.
HPCL has posted a net profit of Rs 701 crore in July-September against a loss of Rs 317 crore in the same period a year ago.
"The increase in profit is because of higher domestic market sales and reduced inventory loss," Surana said.
GAIL net up 180%
State gas utility GAIL ( India) Ltd has posted an 180 per cent jump in net profit in the second quarter ended September on the back of a turnaround in petrochemical business and a reduction in interest cost. Net profit rose to Rs 925 crore from Rs 330 crore a year ago.
