Largest FDI allowed in PSU refinery: Cabinet

New Delhi, June 21: The Cabinet today approved the largest FDI in any PSU refinery by allowing Mittal Energy Investment Pte Ltd to invest 49 per cent in Guru Gobind Singh Refineries Ltd and become a joint venture (JV) partner.

The JV will enhance the availability of petroleum products in the north and result in industrialisation and creation of jobs in Punjab, Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters.

Hindustan Petroleum Corporation Ltd (HPCL) would also make a 49 per cent investment in the JV. This would help in the globalisation of HPCL, he said.

Mittal Energy Investment Pte Ltd is a 100 per cent subsidiary of Mittal Investments, S.a.r.l, Luxembourg.

The JV would give a new lease of life to the Bhatinda refinery which was languishing despite induction of Rs 24 crore by HPCL, the Minister said.

The Cabinet also approved signing of bilateral investment promotion and protection agreements with Brunei and Iceland. This would increase investments between India and the two countries and the agreements would be in force for 10 years.

UNI