HPCL to invest Rs 600bn in five years
21 September 2020
Hindustan Petroleum Corporation Ltd (HPCL) will invest over Rs 600bn for developing infrastructure during the next five years, Chairman Mukesh K Surana said at the company's 68th annual general meeting. The investments will be made in HPCL's refinery expansion and augmentation projects to increase the 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 Rs 120bn in capital expenditure. The refiner said it has not revised its Capex downward despite the COVID-19 impact on the company. Of the Rs 120bn, HPCL will spend Rs 70bn in refinery and Rs 50bn 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 the 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 the 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.