Mittal to visit Punjab and Bathinda Refinery site

Chandigarh, July 25 (UNI) Steel baron L N Mittal, whose company Mittal Energy Investments will execute Rs 17,973 crore Guru Gobind Singh Oil Refinery at Bathinda in a joint venture with the HPCL, will visit the refinery site and assess the economic scenario in Punjab for investments in other projects.

The assurance was given to Chief Minister Parkash Singh Badal by Mr Mittal when two met in the national capital today.

Mr Badal requested the UK-based billionare for expeditious execution and completion of the refinery project by December 2010.

Taking part in the deliberations, Mr Badal thanked Mr Deora for taking personal initiative and getting the Bathinda refinery cleared from the Union Cabinet.

He said this project will radically change the economy of the state, generate thousands of jobs and most importantly, re-buff any politically motivated propaganda that investors were fleeing Punjab since the SAD-BJP ruling combine was voted to power.

The investment by Mr Mittal of Rs 3,506 crore is the first and the largest foreign direct investment (FDI) brought into the petroleum refining sector in collaboration with HPCL. Mr Mittal's plans to acquire the stake in the refinery for Rs 3,365 crore through its wholly-owned subsidiary Mittal Energy Investments Pvt Ltd, incorporated in Singapore.

The Cabinet approval was required since current government policy restricts the FDI in public sector petroleum refineries to up to 26 per cent. Mittal Energy and HPCL will hold 49 per cent stake each in Bathinda refinery project being executed by Guru Gobind Singh Refinery Ltd, while the balance two per cent would be allocated to financial institutions.

While interacting, Mr Deora said the decks had been cleared for the speedy implementation of the project which had been hanging fire for the past several years. He said this major development project in the state would transform the economic landscape of Punjab.

On the occasion, the Chief Minister assured full support and cooperation to the Mittal Group for the execution of this project and said it was just a modest beginning and the state government would soon tie-up with Mr Mittal for exploring other opportunities to tap the industrial potential and to herald an era of industrialisation in the state.

UNI