HPCL on expansion drive with Rs. 60,000-crore capex

Hindustan Petroleum Corporation Ltd. (HPCL) is on a major expansion-cum-consolidation drive that involves a Rs. 60,000-crore capital expenditure plan by 2022. The amount is likely to increase by about Rs. 15,000-crore if some other projects under consideration are included.

Mr. J. Ramaswamy, the company’s Director – Finance, said, “The investment is three-pronged – it will lead to huge capacity expansion, augmenting BS VI compliant fuels, bottom upgradation and consolidation at the existing refining and processing facilities, and a greenfield project.”

“The Vizag refinery complex will see a total investment outlay of Rs. 21,000-crore, which will see the expansion of the refinery from 8.3-mtpa to 15-mtpa,” said Mr. Ramaswamy, adding that it will also cover the production of BS VI fuels and bottom upgradation.

While the Mumbai refinery will see an investment of about Rs. 5,000-crore, where the capacity will be increased from 7.5-mtpa to 9.5-mtpa, the joint venture greenfield refinery planned at Barmer in Rajasthan will see the setting up of a 9-million-tonne integrated refinery and petroleum complex. The Barmer project will see an outlay of over Rs. 43,000-crore.

Referring to another project planned in Gujarat, where an LNG terminal will be set up at an outlay of Rs. 4,000 crore, Mr. Ramaswamy said, “This project is being taken up through a 50:50 joint venture with the Shapoorji Pallonji Group.”