BPCL faces 15 year tax delay worth Rs 250 crore per year from Madhya Pradesh government for its six million tonne Bina Refinery. The company is working on the projects financial closure that has been hanging for nearly a decade. Company chairman Ashok Sinha said that BPCL is planning an IPO of Rs 1,000 crore to part-fund the project .The project cost has risen upto Rs 9,100 crore. He even said that that the refinery is expected to be completed by 09. BPCL will invest Rs 1,800 crore and hold a 50% stake in the project.while Oman Oil will hold 3%. Mr Sinha on elaborating on BPCLs other expansion preoject said that the company is commissioning a lube oil base stock project at its Mumbai Refinery. He even said that the project will be completed by Feb 06. He even says that about 22% of the equity will be offered to financial institutions or a strategic partner. Rs 800 crore will also be invested in taking Mumbai-Indore pipeline to Delhi. The pipeline, with tap-off points at Kota, Mathura and Piyala will be commissioned by next year. BPCL sold about 22 mt of petroleum product during 04-05 and refined 19 million tonne of crude. The company is also working on a city gas distribution project in Kanpur.
Posted On : 9/26/2005 4:40:25 PM