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HPCL to pour Rs 74,000 cr to enhance capacity

Thursday, 22 Aug 2019
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Oil and Natural Gas Corporation (ONGC)-owned Hindustan Petroleum Corporation (HPCL) is planning to make an investment to the tune of around Rs 74,000 crore over the next five years to enhance capacity.

The company is planning to invest around Rs 14,900 crore in FY20. The company is focused on strengthening refining and marketing through expansion of refining capacity, supply chain capabilities and customer reach.

The company owns and operates three refineries and has undertaken capacity expansion at refineries at Visakhapatnam and Mumbai.

The modernisation of the Visakhapatnam refinery will enhance capacity from 8.33 million tonne to 15 million tonne.

The capacity of the Mumbai refinery is also being raised from 7.5 million tonne to 9.5 million tonne. Once completed, these projects will enhance the company’s profitability.

Moreover, the nine million tonne greenfield refinery-cum- petrochemical project coming up at Pachpadra in the Barmer district of Rajasthan is progressing well. Engineering activity is in progress and construction has begun. Moreover, financial closure has also been achieved for the project. The project will being set up at a cost of Rs 43,129 crore.

The ongoing pipeline projects with total estimated investment of Rs 5,555 crore are in various stages of completion. HPCL also plans to build second-generation ethanol production facilities, and market compressed bio-gas.

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