HPCL and Mittal Energy have 49% stake each in the venture while the rest of the stake remaining with financial institutions. The joint venture is being funded in a 1.5:1 debt-equity ratio with an equity contribution of INR38 billion each by HPCL and Mittal Energy.
The cost of the project is INR180 billion, of which INR120 billion has already been committed, said K Murali, director refineries, HPCL.
Early in 2009, HPCL’s refinery and petrochemicals project at Visakhapatnam, Andhra Pradesh, was on hold because of low demand for petroleum products in a slowing economy. Murali said the refinery is on hold as the company is still evaluating the demand situation.
