HPCL to pump Rs 6,900 cr in diesel production facilities

Hindustan Petroleum Corporation (HPCL) will invest Rs 6,900 crore to upgrade its diesel quality to Euro III and IV.

"We have commenced capex of Rs 6,900 crore for diesel hydra treaters in Bombay and Vizag refineries to upgrade the diesel quality to Euro III and Euro IV," HPCL director (finance) Bhaswar Mukherjee told PTI.

"The project would be completed in financial year 2011," he said.

The reduced under-recovery and ample liquidity has also helped to reduce the total outstanding debt of the company to around Rs 18,000 crore, down from Rs 30,000 crore in September-October 2008.

HPCL officials said short-term borrowing cost has also fallen to around 5 per cent.

 

According to estimates, under-recovery for the industry would be around Rs 45,000 crore which had surpassed Rs 1,00,000 lakh crore last year.

HPCL holds total oil bonds worth Rs 9,000 crore in its books with yeild of around 6.25 per cent.