The Hindu Business Line : HPCL Bhatinda refinery to be ready by March 2011

Mumbai, Sept. 22 Hindustan Petroleum Corporation Ltd (HPCL) will commission its Rs 18,919-crore grass root refinery at Bhatinda, Punjab by March 2011, said Mr Arun Balkrishnan, Chairman and Managing Director, HPCL, on the sidelines of the 56th annual general meeting of the company.

Mr L. N. Mittal, through Mittal Energy Investments Pte Ltd, hold 49 per cent stake in the refinery project.

Addressing the shareholders, Mr Balkrishnan said that the refinery is expected to ease product availability for the company’s marketing network in the Northern market. With the commissioning of the refinery project the company would be in a position to aggressively pursue marketing opportunities in the region, he said.

Mr Balkrishnan said that the company has been facing severe liquidity problems resulting in increase short- and medium-term borrowings, which have become alarming. This has necessitated the realignment of capital and revenue expenditure without compromising on long-term profitability, he said

The company is going ahead with the much needed infrastructure improvement, but other expenditures would be scaled down or postponed. Revenue expenditure is being cut to the extent that is feasible, Mr Balkrishnan added.

Mr Balkrishnan also said that the company has been facing attrition in engineering and other professional services. On an average, 150 officers are leaving every year for better career opportunities. The recent Sixth Pay Commission report that has recommended immediate salary revision in public sector companies will further create additional expenditure for the company, he said.

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