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Mittal wants to buy stakes in BPCL, HPCL refineries

Industry sources say that steel tycoon Lakshmi N Mittal is in talks to take a 20% stake in BPCL’s Rs 9,100 crore Bina refinery.

business Updated: Aug 25, 2007 03:36 IST

Billionaire steel tycoon Lakshmi N Mittal is now considering acquiring stakes in two more new refineries in India — in state-run Bharat Petroleum Corp Ltd’s (BPCL) Bina refinery in Madhya Pradesh and Hindustan Petroleum Corporation Ltd’s (HPCL) refinery in Vishakhapatnam.

Industry sources said that Mittal is in talks to take a 20 per cent stake in BPCL’s Rs 9,100 crore, six-million-tonne-a-year Bina refinery, which is likely to be commissioned by 2010-11.

The billionaire is also talking to HPCL for a stake in its proposed green-field nine million tonne refinery-cum-petrochemical complex at Vishakhapatnam in Andhra Pradesh, sources close to the deal said on Friday.

HPCL has been in discussions with France’s Total, state-run gas firm GAIL (India) and Oil India Ltd for a possible four-way partnership in an estimated Rs 25,000-30,000-crore project, an HPCL official said.

An Oil India official, who confirmed participation in the coastal project, said a refinery that would produce 180, 000 barrels a day would be built. “But a study will be taken to decide the capacity of the refinery and petrochemical plant,” he said, adding the entire project would cost an estimated $6-7.3 billion.

A senior GAIL official also confirmed the talks with Mittal, Total, and Oil India for the refinery. “We are interested in the petrochemical project, we are already into this business in India,” he said.

An industry source said: “Total was already talking to HPCL for a stake in the state-run firm’s planned doubling of capacity of the existing refinery at Vizag to 15 million tonnes. HPCL it seems has abandoned the Vizag expansion and is now planning the new refinery-cum-petrochemical complex in the country’s first Petroleum, Chemical and Petrochemical Investment Region (PCPIR).”

First Published: Aug 25, 2007 03:32 IST