NRI Mittal, steel tycoon sign
MoU with HPCL for Bhatinda, Punjab refinery
New Delhi, March 25, 2007
National Informatics Centre (NIC), DIT, MoCIT,
Government of India
baron L N Mittal has formally signed an MoU with HPCL to become
an equal partner in the latter's Rs 16,000 crore Bhatinda refinery,
infusing Rs 3,300 crore in the venture.
Diving further into the Indian oil sector, President and CEO of
the world's largest steel company Arcelor-Mittal will now hold a
49 per cent stake in the Special Purpose Vehicle for building the
plant and laying a 1,100 km pipeline for wheeling crude from Mundra
A tie-up with HPCL brings refinery expertise and could open doors
for Mittal's oil trading plans, according to industry experts with
HPCL emerging as the preferred partner for getting into refining
and gas business globally.
The Guru Gobind Singh Refinery project in Bhatinda, the agreement
for which was signed in Delhi on Saturday, will be completed by
''This will be the first 49 per cent FDI in Indian refining industry
and marks world investor confidence in the sector,'' Petroleum Secretary
M S Srinivasan said earlier this month.
The deal with HPCL has been done through Mittal Investments, a
100 per cent subsidiary held by Mittal family.
Mittal Investments has promoted Mittal Steel company where they
hold 38 per cent stake.
The remaining 49 per cent equity in the nine million metric tonnes
per annum (MMTPA) refinery will be held by HPCL while two per cent
of the project will be held by financial institutions.
The investment comes a year after European oil major BP pulled
out saying the project was unviable.
The new refinery at Bhatinda will have a capacity of 1,80,000 barrels
a day and is scheduled to be commissioned in 2010-11.