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HPCL to invest Rs 100 billion during Ninth Plan period

Rakesh Kumar Dubey in Calcutta

Aiming to emerge as a leading world class energy company, Hindustan Petroleum Corporation Limited is planning to invest Rs 100 billion during the Ninth Plan period for modernisation and expansion.

Chairman and managing director H L Zutshi said HPCL is gearing itself to meet the challenges of the rapidly changing business scenario in the petroleum industry.

The proposed plans included introduction of value-added and environment-friendly products, new products pipelines, development of marketing and infrastructure facilities and investment in joint ventures.

A major business process re-engineering programme was initiated with a view to improve its competitive positioning in line with the deregulated marketplace, he said.

The company had already incurred a capital expenditure, including investments in JVs, of Rs 17.05 billion on various new and ongoing projects during 1998-99. These were financed through internal resources generated, proceeds from warrant conversion and partial redemption of oil bonds by the government.

Of these, five major projects involving investment of around Rs 3.43 billion has already been commissioned during the year which included 13 new POL depots with a tankage capacity of 317,290 kilolitres and additional tankage capacity of 115,300 kl at nine existing locations.

In 1998-99, HPCL reported a turnover of Rs 260 billion and a net profit of Rs 9.01 billion and has proposed a dividend of 110 per cent besides a bonus issue at the rate of one share for every two equity shares held.

Zutshi said another five projects for plants, refineries and pipelines worth Rs 30 billion would be commissioned during 1999-2000.

UNI

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