HPCL to invest Rs. 17,000 crore to expand capacities by 2018.

Hindustan Petroleum Corp Ltd. (HPCL) recently said it will invest Rs. 17,000 crore in raising its Mumbai and Vizag refinery capacity by 2018. HPCL plans to expand its Mumbai refinery from 6.5 million tonnes to 10 million tonnes in two-and-half years from the date it gets environment clearance and Vizag from 8.33 million tonnes to 15 million tonnes, company Director (Refineries) B K Namdeo said. "The expansion of Mumbai refinery will cost Rs. 2,000 crore while Vizag refinery expansion will cost Rs. 15,000 crore," he said. Namdeo said at Vizag a new 9 million tonne unit will be built but some old units of the existing refinery will be taken down. After the expansion, Vizag will have a capacity of about 15 million tonnes per annum. "We have already applied for environment clearance and expect the same by year end," he said, adding the Vizag refinery expansion will take three years from the date it gets all clearances. HPCL, which is part owner for a 9 million tonne refinery at Bhatinda in Punjab, is also setting up a 9 million tonne a year new refinery-cum-petrochemical complex at Barmer in Rajasthan. The company, which owns 12,869 petrol pumps and 3506 LPG distributorship across the country, is looking to beef up its refining capacity to meet growing demand for fuel in the world's third largest energy consuming market.