HPCL once again in Fortune 500 list, plans massive expansion
State-owned Hindustan Petroleum Corporation Ltd (HPCL) has once again figured in the list of Indian companies which have made it to the Fortune 500 list 2016, released last week.
The oil major ranks 367th in the list and is one of the seven Indian companies to figure in the prestigious list. The other companies that have been included in the list are Indian Oil Corp, Reliance Industries, Tata Motors, State Bank of India, BPCL and Rajesh Exports—the later firm, engaged in the gems and jewellery sector, figured in the list for the first time, replacing Oil and Natural Gas Corporation.
Globally, retail giant Walmart topped the global rankings. In fact, last year too, seven Indian companies found their way in the Fortune 500 list.
It was only a few days earlier that HPCL, at its board meeting, recommended issue of bonus shares in the ratio of two for every one held, as a reward to its shareholders.
HPCL participates in India’s biggest refinery
The company is banking on its participation in the setting up of India’s biggest oil refinery, along with other PSU companies IOC, BPCL and Engineers India Ltd.
The refinery, which will have a capacity of 60 million tonnes, will come up on the west coast at a cost $30 billion or Rs.2 lakh crore.
“The refinery and a mega petrochemical complex will be set up in two phases. Phase-1 will be 40 million tonnes together with an aromatic complex, naphtha cracker and polymer complex. It will cost about Rs.1.5 lakh crore,” according to a senior official.
The second phase will cost Rs.50,000-60,000 crore.
India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 183. 5 MT in 2015-16 fiscal.
HPCL has also announced that it will complete the expansion of Visakh Refinery within 48 months. The board approved to fund Visakh Refinery Modernisation Project (VRMP) with an investment of Rs.20,928 crore – one among a few major investments in the State post-bifurcation.
The Ministry of Environment and Forests had already accorded clearance to the modernisation project. The capacity of the existing refinery will be expanded from 8.33 million tonne to 15 million tonne.
In the proposed Petroleum, Chemical and Petrochemical Investment Region (PCPIR), which was originally proposed between Visakhapatnam and Kakinada and is now being considered to be relocated to Machilipatnam, HPCL has big plans for investment in a mega petrochemical complex.