The long-delayed Bhatinda refinery project of Hindustan Petroleum Corporation Limited crossed another significant milestone on Wednesday, with the award of the project management consultancy contract to Engineers India Ltd.
The 9-million-tonne greenfield refinery, involving an investment of Rs 13,800 crore (Rs 138 billion), is scheduled to be completed by September 2010.
The refinery project is being implemented by HPCL subsidiary floated for the purpose -- Guru Gobind Singh Refineries Ltd.
"We expect financial closure for the project by February," said Mahesh B Lal, chairman and managing director of HPCL. The debt-equity ratio for the project is 60:40.
SBI Capital Markets is the lead manager for syndication of the rupee term loan for the project. It also carried out the financial appraisal of the project.
HPCL is keen on a strategic investor for GGSRL. "We are on the look out," said Lal, adding the company is committed to executing the project on its own if it has to.
An IPO for GGSRL may be also in the offing. "We will take a call on that closer to the completion date of the refinery," he said.
HPCL will invest Rs 3,450 crore (Rs 34.5 billion) to build the crude oil receipt, storage and transfer facilities, which will be completed to coincide with the refinery completion.
The refinery has been configured for processing heavy and sour crude, which would enable it to garner "the best refinery margins in the country," said Lal.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group
