Date:07/03/2006 URL: http://www.thehindubusinessline.com/2006/03/07/stories/2006030703240200.htm

Back HPCL to raise refinery capacities

Our Bureau

To invest Rs 1,200 cr in retail expansion

New Delhi , March 6

Hindustan Petroleum Corporation Ltd (HPCL) proposes to raise the capacity of its Mumbai and Visakhapatnam refineries and plans to invest Rs 1,200 crore for expanding its retail outlets next fiscal.

The HPCL Chairman and Managing Director, Mr M.B. Lal, said: ``We plan to raise Mumbai capacity to 7.9 million tonnes per annum (MTPA) from 5.5 MTPA and Visakhapatnam capacity from 7.5 MTPA to 8.4 MTPA.'' He said the expansions, which were a part of the programme to produce cleaner fuel, were to have been implemented this fiscal but have now been pushed to 2006-07.

The company is also likely to finalise an agreement with British Petroleum on equity participation in its Rs 12,000 crore Bhatinda refinery project by April-May. ``HPCL and BP will have equal stake in Bhatinda refinery. We are discussing what should be the shareholding and hope to reach an agreement soon,'' he added.

Moreover, Bhatinda refinery will launch an initial public offer in three-and-half years time to meet the equity left uncovered by HPCL and BP.

As regards investments in expanding the retail network and pipeline projects, Mr Lal said HPCL would invest Rs 1,200 crore in 2006-07 on these projects.

``We currently have 7,000 retail outlets. The company plans to add 850 more. This is the same number we added during the current fiscal,'' he said.