HPCL aims to raise refining capacity by 81 percent by 2019

NEW DELHI (Reuters) - Hindustan Petroleum Corp Ltd (HPCL) aims to invest 540 billion rupees ($9.2 billion) by 2019 to raise its refining capacity by 81 percent.

Head of Refineries B. K. Namdeo told reporters capacity would rise to about 860,000 barrels per day. Expansion would help the state refiner modify its existing decades-old plants and boost refining margins by processing cheaper grades.

HPCL hopes to win environmental approvals by the end of this year to expand its 130,000 bpd Mumbai refinery in Maharashtra, and the 166,000 bpd Vizag plant in Andhra Pradesh.

The company is setting up a 180,000 bpd refinery at Barmer in Rajasthan, which would cost 370 billion rupees. It also has a stake in HPCL-Mittal Energy Ltd, which operates a 180,000 bpd refinery at Bathinda in northern India.

Namdeo said HPCL would invest about 170 billion rupees to expand Mumbai refinery to 200,000 bpd and Vizag to 300,000 bpd.

"Our plan is to have about 42-43 million tonne (840,000-880,000 bpd) refining capacity by 2018/19," he said, adding exact timelines for the expansions depended on approval from the environment ministry.

"After getting the environment approval, we hope to complete Vizag expansion in three years and the Mumbai plan in two to two-and-a-half years," Namdeo said.

($1 = 59.0250 rupees)

(Reporting by Nidhi Verma; Editing by Subhranshu Sahu and Keiron Henderson)