On 21 June 2007, the Cabinet sub-committee is likely to consider Punjab government's request to accord approval of the Rs.18,919 crore Guru Gobind Singh Refinery at Bathinda.

The Cabinet sub-committee is a sequel to the meeting of the Foreign Investment Promotion Board (FIPB) on 8 June 2007, which had raised objections to the proposal of Laxmi Mittal to take 49 per cent equity in the Rs.18,919 crore refinery.

The FIPB at its meeting had refused to allow 49 per cent equity participation by Laxmi Mittal in the project which is to be jointly set up by Guru Gobind Singh Refineries (GGSRL), 100 per cent subsidiary of the Hindustan Petroleum Corporation (HPCL). The FIPB refused permission as the current guidelines on public sector units (PSU) refineries do not allow more than 26 per cent equity participation in such projects.

The proposed refinery project of 9 million tpa and 152 MW power unit is expecting its financial closure by March 2008. The Mittals and the Hindustan Petroleum Corporation Limited (HPCL) were likely to contribute Rs.971 crore by March 2008 in the project. The State Bank of India Capital Markets have been appointed financial advisors for this project and to raise funds for this project which will be routed through an escrow account.

Also See:

Mittal in JV with HPCL for Bhatinda refinery project (15-Dec-06)

Related Links:
Project profile