India’s HPCL to invest $9.47bn towards expansion of refineries
Indian oil and natural gas company Hindustan Petroleum (HPCL) is planning to invest Rs610bn ($9.47bn) over the next four years in a bid to expand its refinery capacity and meet emission control norms.
In an investor presentation last month, the state-owned oil company has expressed its intent to add additional capabilities to both its Mumbai and Visakhapatnam refineries to produce fuel, which is compliant with Euro-VI emission norms.
In a statement, HPCL said: “Major planned investments in refinery, petroleum, oil and lubricants (POL) distribution and natural gas projects.”
Under the investment plan, the refiner will allot Rs209.28bn ($3.24bn) in the expansion of its Visakh refinery in the state of Andhra Pradesh, increasing the plant’s capacity from 8.33 million tonnes per annum to 15 million tonnes by July 2020, reported PTI.
Furthermore, the expansion of Mumbai refinery from 7.5 million tonnes to 9.5 million tonnes per year will be taken up with a budget of Rs41.99bn ($0.65bn), according to the news agency.
Earlier this year, Oil and Natural Gas Corp (ONGC) made a proposal to acquire the government’s 51.11% stake in HPCL.
According to Times of India, the deal is expected to close by the end of this fiscal year and result in a $40bn company.
In the presentation, the company stated that it achieved Rs62.09bn ($0.96bn) profit after tax and a refining throughput of 17.8 million tonnes for the 2016-2017 financial year.
In April this year, India enforced BS-IV emission standards, which were modelled on European standards.
In addition, the sale of BS-III vehicles were banned after the country’s Supreme court passed an order to that effect.
In 2015, the standing committee on petroleum and natural gas recommended the adoption of BS-VI norms by 2020.
Image: Visakhapatnam oil refinery. Photo: courtesy of IM3847/Wikipedia.