Taking a step forward in starting the much delayed Rs 13,800 crore Guru Gobind Singh refinery project in Bathinda, the state-owned Hindustan Petroleum Corporation Ltd (HPCL) has appointed public sector Engineers India Ltd as the project management consultant for the implementation of the project.
Speaking to reporters after signing of the contract with EIL, HPCL's chairman and managing director MB Lall said the financial closure of the project will be completed in next two to three months.
He was confident that the 9 million tonnes per annum refinery will be completed by the second quarter of 2010-11.
"The next milestone for Bathtinda refinery will be financial closure. SBI Capital Markets Ltd have carried out the financial appraisal and are the lead managers for syndication of the rupee term loan requirements for the project. We are hopeful that financial closure will be completed by February next year," Lall said.
The refinery will be operated through a wholly owned subsidiary of HPCL, Guru Gobind Singh Refineries Ltd Lall said an initial public offer (IPO) of the subsidiary may be considered towards the completion of the refinery project. “We will see when we reach that stage," he said.
On plans to induct upstream Oil India Ltd (OIL) as a strategic partner in Guru Gobind Singh Refineries, Lall said the company was yet to receive the final response from OIL. “OIL is still in the process of decision making. We are awaiting OIL’s final response. HPCL will go ahead with the refinery with a strategic partner or on its own," he said.
Lall csaid the Vizag refinery expansion from 9 million tonnes per annum to 18 million tonnes per annum will be completed in the next 42 months with a capital expenditure of Rs. 9,000 crore. The details are being worked out, he added.
EIL's chairman and managing director Mukesh Rohtagi and its private partner Punj Lloyd have made a bid for $1.6-billion for revamp of the Azzawiya refinery in Libya. The project entails upgradation of existing units and raising the capacity from 1.3 lakh barrels to 1.5 lakh barrels per annum.
"We have no information regarding any decision baout the bid. We are hopeful of bagging the project," he said in reply to queries that some media reports had suggested that the EIL-Punj Lloyd combine had already bagged the contract.