(TH)
Hindustan Petroleum Corporation (HPCL) is planning invest as much as ₹61,000 crore over the next five years to augment its refining and marketing capacity to become India’s second-largest state-owned refiner after Indian Oil Corporation. Of the ₹61,000 crore, the company intends to invest ₹7,110 crore this year alone or 21% more than capex of ₹5,860 crore in the last fiscal.
HPCL chairman, M.K. Surana said, “With a huge potential for growth amid rising energy demand and due to low per capita consumption base, the oil and gas sector is poised for an exciting and challenging future.
We are adapting to this changing energy mix and are well positioned to create value for all stakeholders in the future with a capex of over ₹61,000 crore over the next five years.” The government has approved HPCL’s merger with ONGC with the latter buying out the government’s 51.11% stake in HPCL.
Talking about the merger, Mr. Surana said, “The government has formed an advisory panel which would decide the valuation (share price) for the acquisition.”Post merger, HPCL will become a subsidiary of ONGC and will remain a listed company with its brand identity and HPCL’s board will continue to remain in place.
