Public sector refiner and oil marketing company HPCL aims to have 42 million tonnes per annum (mtpa) capacity by 2020, said S. Roy Choudhury, Chairman and Managing Director.
This is targeted to meet the product demand of nearly 50 mtpa expected by that time.
Currently, HPCL has two refineries — 8.3 mtpa in Visakhapatnam and 6.5 mtpa in Mumbai. It also runs a 9 mtpa refinery at Bhatinda, in a joint venture with Mittal Energy Investment Pte Ltd, Singapore, a Lakshmi Mittal group company.
The public sector company expects to reach 42 mtpa capacity by 2016-17 and 50 mtpa by 2020. HPCL has lined up a nearly Rs 45,000-crore expansion target.
According to the plan, the Visakhapatnam refinery would be upgraded to 15 mtpa by 2016-17. Similarly, the Mumbai refinery will be expanded to 10 mtpa within the same timeline.
Moreover, HPCL wants to revive the refinery cum petrochemical project in Andhra Pradesh. The project has been in a limbo for more than six years.
“We are considering the petrochemicals project but the thing is that land is in question again. We have requested the Government of Andhra Pradesh to give us the land for the 15 mtpa refinery-cum-petrochemical complex,” Choudhury said.
The Chairman said HPCL is in discussions with GAIL for the project that is expected to cost around Rs 50,000 crore. “We have written to many foreign companies, and are still waiting for response,” he added.
Earlier, it has discussed with France-based Total. “Total was there earlier, we have written to them but have not got any response till now,” the Chairman said.
Asked when the plan would be finalised, Choudhury said, “It all depends on the land...We will require about 3,000 acres.”
For 2012-13, HPCL has proposed a dividend of Rs 8.50 per share. The dividend would result in a total payout of Rs 337 crore.