The Madhya Pradesh government has granted a
15-year sales tax deferment facility to the decade-long Bina petroleum refinery
project of Bharat Petroleum Corporation.
The 6 million tpa refinery project has been
pending for nearly a decade for a procession of reasons including pulling out of
the lead foreign partner, Oman Oil Co, and the BPCL's inability to secure fiscal
concessions.
The refinery, which would now cost Rs.9,100
crore, is expected to be completed by 2009. BPCL will hold 50 per cent of the
equity (or Rs.1,800 crore) while Oman Oil will be a minority shareholder with 3
per cent. Financial institutions, strategic partners, etc. will hold 22 per
cent. BPCL is planning to float an IPO worth Rs.1,000 crore to part-finance the
project. The IPO would result in a public shareholding of 25 per cent.
Other projects:
- BPCL is likely to commission its Rs.350 crore
lube oil base stock project at its Mumbai refinery by February 2006.
- BPCL will invest Rs.800 crore in taking its
Mumbai-Indore pipeline to Delhi. With tap-off points at Kota, Mathura and
Piyala, the extension will be commissioned in 2006.
- BPCL is working on a city-gas distribution
project in Kanpur.
Also See:
BPCL's Mahul refinery expansion plan formally inaugurated (07-Sep-05)