Sustaining its first-ever financial loss, Bharat Petroleum Corporation is reportedly reviewing some of its capital expenditure plans. BPCL has posted losses of Rs.431 crore during the first quarter of fiscal year 2005-06. Following this, its capex plans of Rs.350 crore lined for the second quarter (Jul-Sep 2005) might be reviewed.

BPCL had proposed to invest Rs.600 crore in the current fiscal year for setting up retail outlets, out of which Rs.350 crore was to be invested immediately. Investment outlined for tankages and pipelines would also be reviewed, it is learnt.

Meanwhile, banks and financial institutions are currently undertaking appraisal of the Bina petroleum refinery project in Madhya Pradesh. Once complete, BPCL would finalize partners who would be offered 50 per cent equity stake in Bharat Oman Refineries, the SPV implementing the project.

The refinery is likely to cost around Rs.9,000 crore with another Rs.2,000 crore for laying the 943-km pipeline network.

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Bina refinery to cost Rs.9,000 crore (23-Jul-05)