HPCL in talks with OIL on Bhatinda refinery

New Delhi, Sept 28: Hindustan Petroleum Corporation Ltd (HPCL) is in talks with Oil India Ltd (OIL) to set up nine-million tonne refinery in Bhatinda, Punjab, at a total investment of Rs 6,000 crore.

''OIL and some other companies have shown interest in taking up about 25 per cent stake in the Bhatinda refinery. Talks with all of them are on. We will enter into an agreement with a suitable company,'' HPCL's Chairman and MD Mahesh B Lal told reporters here.

The company may set the refinery on its own if a suitable partner is not found, he added.

Mr Lal, however, did not divulge the names of other companies which are under HPCL consideration.

Earlier, OIL had shown interest in taking up 25 per cent equity stake in Guru Gobind Singh Refineries Ltd (GGSRL), a company incorporated by HPCL for the implementation of Bhatinda refinery.

The company had sent a proposal to the ministry of petroleum and gas expressing its intention to offload 10 per cent of the 98.13 per cent equity held by the government in order to fund expansion of activities in India and abroad.

''The deal, which is under analysis, if approved by the board may result in the investment of Rs 1,500 crore in the refinery to pick up 25 per cent equity in the company,'' OIL Chairman and MD M R Pasrija had said.

The Central Government has already accorded its approval for setting up of the refinery and associated facilities at Bhatinda.

Also, all environmental and statutory approvals for the project have been obtained, the HPCL CMD informed.

The refinery will be spread across 1,993 acre of land and will have primary and secondary processing units. Other facilities will include utilities such as captive power plant, steam generation, effluent treatment, and crude and product storage.

According to the execution plan, the Crude Oil Terminal will be located at Mundra in Kutch, Gujarat. The crude oil pipeline will originate from Mundra and will traverse the states of Gujarat, Rajasthan and Haryana before terminating at Bhatinda.

UNI