Hindustan Petroleum Corporation Ltd (HPCL) plans to spend Rs 750 billion in expansion and diversification in the next five years with an annual expenditure of around Rs 140-150 billion, the company said.
“Around 25-30% of the capex will be for the renewable or gas-based segment, refinery would take another 20% and balance would be for other downstream marketing projects,” said Rajneesh Narang, company’s Director of Finance.
The company will focus on enhancing renewable energy portfolio, gas business, and value-added products in the downstream segment in the next 5 years. The company’s RE sector expansion would primarily focus in the solar and hybrid models segment.
Further, HPCL is planning to expand its refinery in Vishakhapatnam intending to reach 15 million tonne per annum capacity from the current 8.3 MMPTA. Additionally, the refinery expansion in Rajasthan is expected to be completed by March next year and will start production in the next calendar year, the company said.
“About 74% of the physical completion of the Rajasthan refinery has been done with a capex of Rs 370 billion of the total Rs 730 billion outlay.” Once the bottom upgradation of the company’s Vizag unit is completed, HPCL expects an incremental gross refining margin of $3-$4 per barrel.
(Source: Financial Express)
