M A I N   N E W S

Refinery promises Rs 1,300-cr investment
Ruchika M. Khanna
Tribune News Service

Bathinda, December 11
The Guru Gobind Singh Refinery, which is expected to get commissioned by June 2011, will attract an investment of Rs 1,300 crore in the downstream industry, claimed promoters here today. The refinery, being promoted by HPCL- Mittal Energy Limited (HMEL), has already received proposals from 20 units fort setting up polypropylene based downstream industry.

Talking to TNS here today, on the sidelines of a function to showcase the work being done at the refinery, Prabh Das, chief executive officer (CEO) of the HMEL, said the refinery will have the capacity to produce 4.40 lakh metric tonnes of polypropylene, which can be used by plastic industry like woven sacks and film units as main raw material in manufacturing of plastic mugs, toys, furniture and wrapping film.

Two MoUs were signed today by the HMEL - with Punjab Spintex Ltd and Northern Polyfilms, which will be manufacturing plastic bags and making an investment of Rs 40 crore. Both these units will be buying 6000 tonnes of polypropylene per annum from this refinery.

Officials said that Bathinda, Ludhiana, Banur and Lalru are seen as the possible destinations for investment in the downstream industry and 50 per cent of the polypropylene produced will be consumed within Punjab itself.

“Though some downstream industry can also be set up outside the state, especially near the markets for the goods produced by these downstream companies,” said Das.

The nine million tonne Bathinda oil refinery is being set up with an investment of Rs. 18,919 crore. “An investment of Rs. 13,700 crore has already been made,” he said.

Once commissioned, the refinery will produce high value petroleum products such as LPG, naphtha, petrol, diesel, aviation fuel, pet coke

etc. The liquid products would be marketed through HPCL, the solid products like sulphur, pet-coke and polypropylene would be sold directly by HMEL.

HMEL is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Mittal Energy Investment Ltd, Singapore - a Lakshmi N Mittal Group Company. Both the JV partners hold a stake of 49 per cent each in the company, the rest 2 per cent is held by financial institutions.

Das admitted that the company had always sought incentives from the state government. “The response of the state government has always been supportive (with regard to demand of fiscal sops),” he said.HMEL has been seeking Rs. 400 crore per annum as interest free loan for the first 15 years from 2011-12 to 2025-26, to be paid back per annum from 16th year-2026-27 onwards for the next 15 years.

Punjab Deputy Chief Minister, Sukhbir Singh Badal said that the talks on granting fiscal concessions to HMEL were moving in the positive direction.