HPCL TO INVEST RS. 74,000 CR
HPCL has undertaken modernisation project for its Visakhapatnam refinery in Andhra Pradesh at ₹20,928 crore
The capacity of its Mumbai refinery is also being enhanced from 7.5 MMTPA to 9.5 MMTPA at a cost of ₹5,060 crore
by Prashant Kapadia/NHN
MUMBAI : State-run Hindustan Petroleum Corporation Ltd (HPCL) plans to invest about₹74,000 crore over the next five years for various projects, chairman and managing director Mukesh Kumar Surana told shareholders at the company’s annual general meeting on Wednesday.
“HPCL is focused on strengthening the core business of refining and marketing through the expansion of refining capacities, supply chain capabilities, and customer reach. In addition, thrust is on creating new levers of growth by establishing a strong presence in petrochemicals, scaling up footprints in natural gas business and expanding marketing presence in overseas geographies,” Surana added.
HPCL, which owns and operates three refineries in the country, has undertaken modernisation project for its Visakhapatnam refinery in Andhra Pradesh at₹20,928 crore. This project will enhance the refinery capacity from the present 8.33 million metric tonnes per annum (MMTPA) to 15 MMTPA. The capacity of its Mumbai refinery is also being enhanced from 7.5 MMTPA to 9.5 MMTPA at a cost of ₹5,060 crore. The refinery will have the capability to produce fuel for BS-VI compliant vehicles. The completion of these projects will enhance the profitability of the refineries, Surana added. HPCL, which is building a 9 MMTPA greenfield refinery-cum-petrochemical project at Pachpadra in Barmer district of Rajasthan, said the project has achieved significant progress with technology selection completed for all the 13 processing units.
“Engineering activities are in progress and site construction activities have commenced. Financial closure has also been achieved for this project. The project is being implemented at a cost of ₹43,129 crore,” Surana told shareholders, and added that the company had already put in place an action plan for the marketing of petrochemicals before the commencement of production from the integrated petrochemical complex at Barmer in Rajasthan.
HPCL’s net profit for the last fiscal was at ₹6,029 crore and gross refining margins (GRM) averaged $5.01 per barrel. Last fiscal, HPCL saw its highest ever capital expenditure of₹12,438 crore, with some capital projects being completed while other projects under implementation. To enhance liquefied petroleum gas supply and distribution capabilities, bottling capacity of 330 TMTPA (thousand metric tonnes per annum) was added during the year at existing bottling plants. The company also commissioned a new LPG bottling plant at Warangal district in Telangana with a capacity of 60 TMTPA.
HPCL, along with Indian Oil Corporation Ltd and Bharat Petroleum Corporation Ltd, incorporated a joint venture company, IHB Private Ltd, in July 2019 for the execution of the country’s longest, 2,757-km LPG pipeline project from Kandla in Gujarat to Gorakhpur in Uttar Pradesh. HPCL also plans to build second-generation ethanol production facilities and market compressed bio-gas through its retail outlets.
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