Hindustan Petroleum to invest ₹60,000 cr in five years: Surana1 min read . Updated: 17 Sep 2020, 07:18 AM IST
In 2020-21, HPCL will invest ₹12,000 crore. Of the ₹12,000 crore, it will spend ₹7,000 crore to increase refinery capacity
MUMBAI : State-run Hindustan Petroleum Corp. Ltd will invest over ₹60,000 crore in the next five years to build infrastructure, HPCL chairman Mukesh K. Surana said at the company’s 68th annual general meeting on Wednesday.
HPCL will increase its refining capacity at the Mumbai facility to 9.5 million tonnes per annum (mtpa) and at the Visakh refinery to 15 mtpa. “These projects will improve the complexity of the refineries and add to the overall gross refining margins," he said.
In 2020-21, HPCL will invest ₹12,000 crore. The refiner said it has not revised its capex downward despite the covid-19 impact. Of the ₹12,000 crore, it will spend ₹7,000 crore to increase refinery capacity and ₹5,000 crore for marketing.
The company will also set up 500 retail outlets in FY21. In FY20, HPCL had commissioned 1,194 new retail outlets and 245 new liquefied petroleum gas (LPG) distributorships. It has 16,476 retail outlets and 6,110 LPG distributors.
HPCL exports petroleum products to 14 countries. It is further expanding its market through HPCL Middle East FZCO, a wholly owned subsidiary based in Dubai, to increase its presence in West Asia and African markets.
“We have tied up with State Trading Corp. of Bhutan Ltd (STCBL) for setting up retail outlets and supplying motor fuels in Bhutan. I am delighted to state that the company commissioned its first retail outlet in Bhutan in 2019-20 under this partnership. The plans are to expand the overseas operation to 20 countries," said Surana. HPCL is also building a liquefied natural gasification (LNG) terminal at Chhara, Gujarat, as part of its strategy to expand in the clean energy space.
“Expansion of the business portfolio with greater presence in the clean energy verticals of Natural Gas remains the focus area. HPCL, along with its joint ventures, has the authorization for City Gas Distribution in 20 geographical areas covering nine states. To promote the usage of cleaner fuels and for giving wider choices to customers, CNG facilities were provided at 166 retail outlets, taking the total number of retail outlets with CNG facilities to 471," Surana added.