Financial Daily from THE HINDU group of publications
Tuesday, Mar 07, 2006
Financial Daily from THE HINDU group of publications Tuesday, Mar 07, 2006 |
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Corporate
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Outlook BPCL may commission Bina refinery by 2009-end Our Bureau
New Delhi , March 6 Bharat Petroleum Corporation Ltd (BPCL) expects to commission a refinery at Bina in Madhya Pradesh by the end of 2009. "We hope to start construction by April,'' Mr Ashok Sinha, Chairman and Managing Director, BPCL, told presspersons here on Monday. The proposed six million tonnes per annum Bina refinery would cost Rs 10,300 crore and would be completed by December 2009, he said. ``The refinery will be financed in a debt-equity ratio of 1.6:1 and the company would raise Rs 6,300 crore debt for the project beginning 2007,'' he added. Bharat Petroleum had earlier said it was planning Rs 1,000-crore initial public offering in about two years for the new refinery that is expected to have a capacity of 120,000 barrels per day. Mr Sinha said the company was losing Rs 3 per litre diesel and Rs 2 per litre on petrol. The total revenue losses on sale of all fuels - LPG, kerosene, petrol and diesel - were likely to be about Rs 4,000 crore this fiscal. ``The crude prices have firmed up during the last few days, increasing our losses,'' he said.
Oil bonds
The company was losing Rs 171 on LPG cylinder and about Rs 12 per litre on kerosene. Regarding the share of oil bonds, he said BPCL expected at least one-fourth of the Rs 11,500 crore bonds to be issued to oil marketing companies as compensation for losses suffered on the sale of LPG and kerosene below cost. ``We plan to trade these bonds in the market immediately after their receipt. The proceeds would be used to partly pay off the Rs 5,800-crore debt and in meeting working capital requirements,'' he said.
Retail network
BPCL would invest Rs 1,500 crore during 2006-07 for expanding its retail network, LPG bottling capacity and Mumbai-Delhi product pipeline. Of this, Rs 300-400 crore would be in setting up outlets to augment its existing strength of 6,900 petrol pumps.
More Stories on : Outlook | Petroleum | Bharat Petroleum Corporation Ltd
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