Guru Gobind Singh refinery mulls Rs 5,000 crore expansion at Bhatinda

26-Dec-16

The Guru Gobind Singh refinery at Bhatinda in Punjab plans to increase refining capacity to 18 mln tpa and set up a petrochemical complex, as per sources. The Bhatinda Refinery is run by HPCL-Mittal Energy Ltd (HMEL), a joint venture between Hindustan Petroleum Corp. Ltd and Mittal Energy Investments Pvt. Ltd, Singapore. HPCL and Mittal Energy Investments hold 49% stake each in the venture, with financial investors holding 2%.

A banker aware of the development said on condition of anonymity that the company would be funding expansion through a combination of equity and debt syndication by banks to the tune of Rs5,000-6,000 crore. In an emailed response, HMEL said, “We continue to evaluate various opportunities to enhance and expand our business; however, as a matter of policy we do not comment on future plans.” Engineers India Ltd, an engineering consultancy and engineering, procurement and construction (EPC) service provider, is working on a feasibility report on the refinery’s expansion and the petrochemical unit.