Hindustan Petroleum Corporation
(HPCL) has planned to acquire equity stake in Bharat Petroleum
Corporation's (BPCL) upcoming 6 million tpa greenfield Bina
refinery in Madhya Pradesh.
The Rs.6,354 crore Bina refinery
in which BPCL has an equity stake of 51 per cent, is expected to
be commissioned by mid-2008. Oman Oil Company (OOC), which was to
have a majority stake in the joint venture, now has only 2 per
cent.
Of the 6 million tonnes that the
Bina refinery would annually produce, HPCL has indicated a
requirement of 1.4-1.6 million tonnes of petrol, diesel, kerosene
for marketing in Madhya Prdaesh.
Meanwhile, BPCL has sought excise
duty concessions from the Madhya Pradesh government on sale of
petroleum products for a period of eleven years from the date of
commissioning.
It may be mentioned that following
the exit of OOC from the joint venture, the Union petroleum
ministry has planned to offer equity stake to a strategic
partner. During early 2004, ONGC also expressed its keenness in
acquiring equity stake in the Bina refinery project.
HPCL, itself, is in the midst of
setting up a 9 million tpa greenfield refinery at Bhatinda in
Punjab.
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