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HPCL prepares Rs 7,110 crore biz growth investment plans in FY18

 Agencies |  2017-09-16 16:41:26.0

HPCL prepares Rs 7,110 crore biz growth investment plans in FY18

Mumbai: State-owned oil marketer HPCL has drawn up investment plans of Rs 7110 crore for business growth in the current fiscal. The company, which is being merged with exploration giant ONGC, has also planned capex of Rs 61,000 crore for capacity expansion over the next five years.

While the capex stood at Rs 5860 crore in the last fiscal, it is expected to be Rs 7110 crore this financial year.
"With a huge potential of growth amidst rising energy demand and due to low per capita consumption base, the oil and gas sector is poised for an exciting and challenging future," HPCL chairman and managing director M K Surana told reporters here post the company's annual general meeting.
"We are adapting to this changing energy mix and are well positioned to create value for all the stake-holders in the future with a capex of over Rs 61,000 crore over the next five years," he added.
On ONGC acquiring HPCL, Surana said the government has formed an advisory panel which would decide the valuation (share price) for acquisition.
Union Finance Minister Arun Jaitley is heading the three-member ministerial panel to oversee and expedite the sale of the government stake in oil refiner HPCL to explorer ONGC for around Rs 35,000 crore.
On HPCL taking over MRPL post-acquisition by ONGC, Surana said a discussion on the issue has not taken place yet but "it is a reasonable possibility that MRPL will go along with HPCL".
Earlier in the day, Surana informed investors that "the focus (of ONGC acquiring HPCL) is to introduce new technologies, create a vibrant and investor friendly upstream sector for production of oil and gas, transform country into a refining and petrochemical hub, create a national natural gas grid, move to a market driven pricing, leverage technology for reducing costs, introduce innovative payment solutions and transition the country to a low carbon economy".

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