HPCL is planning to invest Rs 61,000 crore over the next four years in expanding and upgrading its existing refining capacity to meet higher quality fuel norms. HPCL is upgrading both its Mumbai and Visakh refineries to produce fuel meeting Euro-VI emission norms.
The company said the following,
"Major planned investments in refinery, POL (petroleum, oil and lubricants) distribution and natural gas projects."
It will invest Rs 20,928 crore in expanding its Visakh refinery in Andhra Pradesh from 8.33 million tonnes per annum to 15 million tonnes by July 2020. Also, the Mumbai refinery is being expanded to 9.5 million tonnes a year from current 7.5 million tonnes at a cost of Rs 4,199 crore.
The investment plans are irrespective of the proposal by Oil and Natural Gas Corp (ONGC) to buy out the government's 51.11 per cent stake in HPCL. Since HPCL will turn into a subsidiary of ONGC if the proposal gets government nod, the investment plans would not change.
HPCL is building a new 9 million tonnes per annum refinery-cumpetrochemical complex at Pachpadra in Rajasthan and a petrochemical complex at Kakinada in Andhra Pradesh.
Of the Rs 61,000 crore to be invested till 2021, Rs 23,400 crore will be in refining, Rs 23,600 crore in marketing infrastructure and another Rs 13,000 crore in joint venture projects. The joint venture projects include the west coast refinery, petrochemical complex at Kakinada, a 5 million tonnes LNG import terminal at Chhara in Gujarat and a fuel farm facilities at Mumbai airport.