Shirish Nadkarni
OGJ Correspondent
MUMBAI, Feb. 22 -- Hindustan Petroleum Corp. Ltd.'s plans for a 180,000-b/d refinery at Bhatinda in Punjab, northwestern India, have moved forward with the purchase of a 49% equity interest by Mittal Investments, owned by the family of international steel baron Laksmi Mittal.
The stake, valued at $750 million, earlier had been offered to BP PLC, which withdrew from its proposed venture with HPCL (OGJ, Apr. 24, 2006, p. 38). Seventeen non-Indian companies had been contacted over the past year with an offer of equity in the refinery.
"This is the first case of foreign direct investment in India's refining sector," said Petroleum Minister Murli Deora. He indicated that HPCL would retain a 49% interest.
The investment is subject to government approval.
HPCL Chairman M. B. Lal said construction will be complete by September 2010.
A crude oil pipeline will connect the refinery with the port of Mundra in Gujarat.
