Steel magnate LN Mittal plans to join forces with Total SA of France and Hindustan Petroleum Corporation Ltd (HPCL) to set up a mammoth greenfield refinery cum petrochemical project at the proposed petroleum, chemicals & petrochemicals investment region (PCPIR) near Visakhapatnam in Andhra Pradesh. Mittal's first petrochem foray is the investment in HPCL's Rs 24,000-crore refinery at Bhatinda, Punjab. The project also marks HPCL's foray into the petrochemical sector.
The investment outlay for the Visakhapatnam project is expected to be over Rs 30,000 crore. Mittal Energy Investments is an equal partner with the government, each holding a 49% stake in the refinery. A memorandum of understanding (MOU) for executing this project will be signed shortly. GAIL (India) and Oil India Ltd are expected to be the other joint venture partners in the project. HPCL's board has cleared the proposal earlier this week for signing the MoU with Mittal Energy Investments, Total, GAIL and OIL.