NEW DELHI: State-run Hindustan Petroleum Corporation Ltd (HPCL) on Wednesday said it plans to invest about Rs 74,000 crore over the next five years in capital expenditure.
HPCL chairman-cum-managing director Mukesh Kumar Surana told shareholders at the refining and marketing major’s annual general meeting that it would be expanding its refining capacities and its supply chains, besides investing in petrochem and in projects abroad.
“HPCL is focused on strengthening the core business of refining and marketing through the expansion of refining capacities, supply chain capabilities and customer reach,” Surana said, adding that there would also be a “thrust on creating new levers of growth by establishing a strong presence in petrochemicals, scaling up footprints in natural gas business and expanding marketing presence in overseas geographies.”
Surana said HPCL recorded its highest ever gross sales of Rs 2,95,713 crore in 2018-19 and its net profit for the year stood at Rs 6,029 crore, while the gross refining margins averaged at $5.01 per barrel.
HPCL, which runs three major refineries in the country, is currently modernising its Visakh Refinery in Andhra Pradesh at an estimated cost of Rs 20,928 crore. Once completed, this project will increase the firm’s refinery capacity by 80 per cent from the current 8.33 million metric tonnes per annum (MMTPA) to 15 MMTPA.
It is also in the process of increasing the capacity of its Mumbai refinery from 7.5 MMTPA to 9.5 MMTPA at a cost of Rs 5,060 crore. The refinery will have the capability to produce BS-VI compliant auto fuels. Surana told shareholders that completion of these projects will enhance HPCL’s profitability.
He also said that a 9 MMTPA greenfield refinery-cum-petrochemical project at Pachpadra in Barmer district of Rajasthan was also being completed. The chairman added that the ongoing pipeline projects with total estimated investment of Rs 5,555 crore are at various stages of completion.