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HPCL to invest ₹60,000 crore in five years on infrastructure development

2020-09-16

HPCL to invest ₹60,000 crore in five years on infrastructure development

Photo: Ramesh Pathania/Mint (Ramesh Pathania/Mint)

For the current fiscal, HPCL will invest ₹12,000 crore in capital expenditure, of which ₹7,000 crore will be allocated to refinery expansion and ₹5,000 crore to marketing

State-run Hindustan Petroleum Corporation Ltd (HPCL) will invest over ₹60,000 crore for developing infrastructure during the next five years, Chairman Mukesh K Surana said at the company’s 68th annual general meeting on Wednesday.

The investments will be made in HPCL’s refinery expansion and augmentation projects to increase capacity of Mumbai Refinery to 9.5 million metric tonnes per annum (mmtpa) and Visakh Refinery to 15 mmtpa.

“These projects will improve the complexity of the refineries and add to the overall Gross Refining Margins,” added Surana.

For the current fiscal, HPCL will invest ₹12,000 crore in capital expenditure. The refiner said it has not revised its capex downward despite the covid-19 impact on the company.

Of the ₹12,000 crore, HPCL will spend ₹7000 crore in refinery and ₹5000 crore in marketing.

The company would also be setting up 500 fuel retail outlets during FY 20-21. Last financial year, HPCL commissioned 1,194 new retail outlets and 245 new liquefied petroleum gas (LPG) distributorships taking the number of total retail outlets to 16,476 and number of total LPG distributors to 6,110.

HPCL is currently exporting petroleum products to 14 countries and through its HPCL Middle East FZCO, a wholly owned subsidiary set up in Dubai, it is expanding its presence in Middle east and African markets, Surana said.

“We have tied up with State Trading Corporation of Bhutan Limited (STCBL) for setting up of retail outlets and supply of motor fuels in Bhutan. I am delighted to state that your Company commissioned its first retail outlet in Bhutan during 2019-20 under this partnership. The plans are to expand the overseas operation to 20 countries,” said Surana.

The company is also building a liquefied natural gasification (LNG) terminal at Chhara, Gujarat as part of its strategy to expand in the clean energy vertical.

“Expansion of business portfolio with greater presence in the clean energy verticals of Natural Gas remains to be the focus area. HPCL along with its Joint Ventures has the authorization for City Gas Distribution in 20

Geographical Areas covering 9 states. To promote the usage of cleaner fuels and for giving wider choices to customers, CNG facilities were provided at 166 Retail outlets taking the total number of retail outlets with CNG facilities to 471,” said Surana.

During the year 2019-20, HPCL commissioned its Uran Chakan Shikrapur LPG Pipeline Project, Mundra Delhi Pipeline (MDPL) Capacity Expansion and Palanpur Vadodara Pipeline Project among others.

HPCL also commissioned a 120,000 metric tonnes capacity LPG bottling plant at Sugauli (Bihar) taking its bottling plants to 50 in the country.

“In addition, LPG bottling capacity augmentation projects were completed and commissioned in Jatni (Odisha), Kondapally (Andhra Pradesh), Hoshiarpur (Punjab), Anantpur (Andhra Pradesh), Raipur (Chhattisgarh) and Manglia (Madhya Pradesh) LPG plants, with total capacity addition of 360 TMTPA during the year. The enhanced capacities shall help in meeting the growing LPG demand in India,” the company said.