Mittal-funded project to be completed on time

When the proposed projects of Lakshmi Mittal Group are getting delayed in other states, the refinery project funded by the Mittal group in joint venture with Hindustan Petroleum at Bathinda in Punjab is almost halfway through.

According to the company officials, almost 44% work on the estimated Rs 19,000 crore Guru Gobind Singh refinery at Bathinda was already done as on September 15, 2009. HPCL-Mittal Energy Limited (HMEL), the joint venture between Hindustan Petroleum Corporation and Lakshmi Mittal group’s Mittal Energy Investment that would have a capacity of the 9 million metric tonne per annum (MMTPA) refinery would be commissioned by mid-2011.

Arun Balakrishnan, Chairman HMEL said that the scheduled date for mechanical completion was March 2011 and all the units of the refinery would be commissioned by mid-2011.

“Of the total investment of Rs 19,000 crore, we have already invested close to Rs 5,300 crore in the project. The work on the pipeline from Mundra port to Bathinda refinery for crude supply is mid-way and is likely to be complete by November 2010. The 1,000 km long pipeline is being built in six stretches and it will cost around Rs 4,000 crore. The capacity of the pipeline will be 9 million tonnes,” said Balakrishnan.

A product pipeline of about 300 km length will also be set up from Bathinda to Bahadurgarh in Haryana for distribution of products like kerosene, petrol, diesel etc. This will cost the company about Rs 600 crore and will have a capacity of 5 million tonnes. At least 30% of the products will be distributed through railway loadings and the rest through the pipeline.

Overall 93 per cent of ordering and tendering has been completed of the refinery. At present about 19,200 contract employees are working at the refinery, pipeline and other sites. A captive power plant of 165 Mw is being set for the in-house consumption. According to Balakrishnan they have approached the Punjab government to give them a fiscal incentive of Rs 2,500 crore.