The Hindu : Business : Financial closure of Bhatinda refinery this month

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Thursday, Jul 05, 2007
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Financial closure of Bhatinda refinery this month

Special Correspondent

NEW DELHI: Petroleum Minister Murli Deora on Thursday said the Rs. 19,000-crore HPCL-Mittal Bhatinda refinery would be taken up on fast track.

“My priority would be ensure commissioning of the project ahead of schedule rather than laying its foundation stone,” he told a delegation of Congress leaders from Punjab led by the Leader of the Opposition, Rajinder Bhatal, here.

The Union Cabinet had on June 21 approved the proposal of Mittal Energy Investments Private Limited (MEI), a 100 per cent subsidiary of Mittal Investments (MI), to own 49 per cent equity as joint venture partner in Guru Govind Singh Refinery Limited (GGSRL). HPCL will hold 49 per cent equity and financial institutions (FIs) the balance two per cent. Equity investment by HPCL and MI comes to Rs. 3,506 crore each and by FIs Rs. 143 crore.

Mr. Deora said decks had been cleared for implementation of this project. He also took stock of the steps contemplated by the promoters to put implementation of the refinery on a fast track.

Arun Balakrishnan, Chairman and Managing Director, HPCL, and B. S. Sant, Managing Director, GGSRL, made a detailed presentation on the steps planned to be taken to put the project on fast track. The project did not make the desired progress in the past for various reasons, even though its foundation was laid way back in 1988. Mr. Balakrishnan said the project would achieve financial closure this month. The project had tied up Rs. 10,733 crore with a consortium of bankers led by State Bank of India. The project is expected to be commissioned by 2010-end.

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