Mittal pays first instalment for 49% in Bhatinda refinery

Mittal pays first instalment for 49% in Bhatinda refinery
PTI
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First Published: Wed, Jul 25 2007. 12 44 PM IST
Updated: Wed, Jul 25 2007. 12 44 PM IST
New Delhi: India-born billionaire Lakshmi N Mittal on 25 July made a payment of Rs500 crore as the first instalment for picking up 49% stake in HPCL’s Rs18,919 crore Bhatinda refinery.
Mittal Investments Chairman L N Mittal handed over a cheque of Rs500 crore to HPCL chairman and managing director Arun Balakrishnan here.
Mittal has picked up 49% in Bhatinda Refinery, the same as Hindustan Petroleum. The balance 2% stake is with financial institutions.
Mittal Energy Investments Pte Ltd, a subsidiary of Mittal Investments, has parked $110 million in an escrow account as guarantee for its 49% stake in the nine million tons Bhatinda refinery project.
The project is being financed in 1.5:1 debt-equity ratio.
Total equity investment by Mittal and HPCL would be Rs3,577.50 crore each.
Mittal’s investment in Bhatinda is the single largest foreign direct investment (FDI) in the refining sector and his coming on board has helped the project take off, Petroleum Minister Murli Deora had said earlier.
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First Published: Wed, Jul 25 2007. 12 44 PM IST