• HPCL to invest Rs 74,000 crore in five years

    ONGC-owned Hindustan Petroleum Corporation(HPCL) is planning to invest around Rs 74,000 crore over the next five years to expand capacity.

    The Navaratna company plans to invest around Rs 14,900 crore in the current fiscal, chairman Mukesh Kumar Surana told shareholders after the annual general meeting here Wednesday evening.

    “We are focused on strengthening refining and marketing through expansion of our refining capacity, supply chain capabilities and customer reach.

    “In addition, the thrust is on creating new levers of growth by establishing a strong presence in petrochemicals, scaling up footprints in natural gas and expanding marketing overseas,” he said.

    The company, which owns and operates three refineries, has undertaken capacity expansion at refineries at Visakhapatnam and Mumbai.

    The modernization of the Visakhapatnam refinery will enhance capacity from 8.33 million tonnes to 15 mt.

    The capacity of the Mumbai refinery is also being enhanced from 7.5 mt to 9.5 mt.

    “On completion, these projects will enhance our profitability. We will have the capability to produce BS-VI fuels,” he added.

    Surana further said the 9 mt greenfield refinery-cum- petrochemical project coming up at Pachpadra in the Barmer district of Rajasthan has achieved significant progress.

    “Engineering activity is in progress and construction has commenced. Financial closure has also been achieved for this project. The project is being implemented at a cost of Rs 43,129 crore,” Surana said.

    The company is, he said, laying thrust on pipeline network expansion.

    “Ongoing pipeline projects with a total estimated investment of Rs 5,555 crore are in various stages of completion,” he added.

    The company also plans to build second-generation ethanol production facilities and market compressed bio-gas.

    Its net profit for fiscal 2019 stood at Rs 6,029 crore and gross refining margins (GRM) averaged at USD5.01 a barrel.

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