MOSCOW (MRC) -- Hindustan Petroleum Corporation Ltd (HPCL) shelved a plan to build a refinery in Andhra Pradesh, although it will go ahead with a proposed petrochemical unit, saud Chemindigest.
The company’s oil refinery at Visakhapatnam is being expanded to almost double, obviating the need to add capacity in the state at present. Due to the huge investment in building a grassroots refinery, as well as a supply glut, companies have been wary of building additional capacity recently.
HPCL will build the petrochemical plant in partnership with GAIL Ltd, the government-owned gas distributor. The two companies had discussed the possibility of setting up a refinery-cum-petrochemical complex for years, but the inability to find foreign partners to fund the project has kept the plan from taking off.
The two companies have evaluated the prospects of setting up a refinery-cum-petrochemical complex costing Rs 85,000 crore-95,000 crore as well as only a petrochemical unit for about Rs 35,000 crore and a final call will be based on business prospects and availability of capital.
As MRC informed earlier,Hindustan Petroleum Corporation Limited to post an over 34 times increase in its net profit at Rs 1588 crore, for the first quarter of this fiscal. Net profit for the corresponding quarter of last year stood at Rs 46 crore.
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC