HPCL on its way to capacity expansion

Hindustan Petroleum Corporation (HPCL) has announced in its meeting held on July 20 that the company has approved proposal of Visakh refinery's capacity expansion from 8.33 to 15 Million Metric Tonnes per annum (MMTPA) with Residue Up-gradation Facility meeting BS VI Fuel Specification Compliance under Visakh Refinery Modernisation Project (VRMP).

The stock of HPCL is trading at an all-time high. Post announcement the stock has opened with a gap-up of 10 per cent at Rs 1233 on July 21. HPCL along with most other oil marketing companies has witnessed a consistent uptrend since March 2016 amidst a sharp decline in the Crude oil prices all over the world.

The Visakh refinery project has an investment of Rs 20928 crores which is required to be completed within 48 months from the date of approval. Visakh refinery, one of the major industries of Vishakhapatnam and first oil refinery on East Coast, is an important contributor to HPCL’s petroleum product requirements. It was built with an installed capacity of 0.65 MMTPA.

Earlier during March 2016 HPCL had planned to invest Rs 45000 crores together in Mumbai and Vishakhapatnam refineries.

HPCL is a manufacturer of motor spirit, high speed diesel and liquefied petroleum gas. It is engaged in refining, marketing and transportation of petroleum products, and exploration and production of hydrocarbons.