HPCL to invest RS 61,000 crore in next 5 years

Mumbai Sept 18: Hindustan Petroleum Corporation will invest Rs 61,000 crore in five years ending 2022 to scale up its refining and marketing operations.chairman Mukesh Surana has said that "the state-run oil marketing company plans to invest Rs 7,110 crore this fiscal against Rs 5,860 crore in FY17".

"With huge potential of growth amidst rising energy demand in the country and due to low per capita consumption base, oil and gas sector is poised for an exciting and challenging future." "We are adapting to this changing energy mix and are well positioned to create value for all the stakeholders in the future business environment with a capex of over Rs 61,000 crore over five years period," he said.

Managing director of the firm has said that "HPCL is focused on enhancing the refinery foot print to increase self-sufficiency, diversify into the profitable segment of petrochemicals, strengthen and expand the core business of refining and marketing and create presence in the future business line of natural gas for achieving growth and superior financial performance".



Earlier this year, the government has approved merger of HPCL with state-run oil explorer ONGC. While the government has indicated that HPCL will become a subsidiary of ONGC and would continue to be listed on the bourses separately, other details are yet to be finalized.

Sources said that with the Merger of ONGC and HPCL there are high chances that MRPL (Mangalore Refinery and Petrochemicals) would be amalgamated into HPCL so that the downstream process can also be consolidated.


MRPL is a subsidiary of ONGC and HPCL owns 16% stake in the refinery. A potential merger with HPCL will give MRPL access to its fuel retail network, and help HPCL reduce the gap between the output from its refinery and sale from its retail network.