NEW DELHI: The public sector Hindustan Petroleum Corporation Limited (HPCL) is planning an investment of Rs. 1,200 crore for expanding its retail network next year along with expanding capacity of the Mumbai and Vizag refineries. Disclosing this here on Monday, HPCL Chairman, M. B. Lal, said 850 new retail outlets would be opened this year, the same level as last year. The company had 7,000 retail outlets.

Mr. Lal told reporters that the capacity of the two refineries would also be raised. The Mumbai refinery capacity would be taken from 5.5 million tonnes to 7.9 million tonnes per annum and that of the Vizag refinery from 7.5 million tonnes to 8.4 million tonnes. He said the expansions were part of a programme to produce clean fuels. They were to be implemented in the current financial year but would now be taken up in 2006-07.

Mr. Lal said an agreement was likely to be concluded shortly with British Petroleum for equal equity participation in the Bhatinda refinery. An initial public offer (IPO) was also proposed to be made after three years to provide the balance equity for the project.

He said talks were under way with Royal Dutch Shell to take a 26 per cent equity share in the Hazira LNG terminal. Simultaneously, the prospects of importing LNG and regassifying it were being considered by the company.

BPCL's plans

Bharat Petroleum Corporation Limited (BPCL) also plans to invest Rs. 1,500 crore in the next fiscal for expanding its retail network, LPG bottling capacity and the Mumbai-Delhi product pipeline. According to BPCL Chairman, Ashok Sinha, the Bina refinery project will be completed by December 2009 at a cost of Rs. 10,300 crore. He expressed concern over mounting losses due to soaring world crude oil prices.

He said the total revenue loss on sale of diesel, petrol, kerosene, LPG and was likely to reach Rs. 4,000 crore in the current financial year. He said BPCL expected about one-fourth of the total Rs. 11,500 crore worth of oil bonds being issued by the government.

These would then be traded in the markets and the proceeds used to partly pay off debt and to meet working capital needs, he said.

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