HPCL Approves ₹2,212 Crore Investment, Appoints New CFO

12 Sep 2024 , 10:45 AM

HPCL has approved an infrastructure investment of ₹2,212 Crore during its latest board meeting. The funds are allocated to the Visakh Raipur pipeline project, which includes building a pipeline from Visakhapatnam to Raipur and setting up a depot at Kantabanji.

This initiative aims to enhance product distribution from the Visakh Refinery, reduce costs, and improve supply chains across eastern, central, and northern India. HPCL revised the cost estimate for the Visakh Refinery Modernization Project (VRMP) to ₹30,609 Crore, with completion anticipated by October 2024.

The refinery upgrade will boost capacity to 15 million metric tonnes per annum (MMTPA) and include advanced bottom-upgradation technologies. K Vinod has been appointed as the new CFO, bringing over 30 years of finance and strategic expertise, previously serving as Executive Director of Corporate Finance.

HPCL’s announcement comes amid a 4% drop in crude prices, with UBS predicting a ₹2 per liter rise in refining and marketing margins for diesel and gasoline in Q2.

HPCL is an Indian PSU in the petroleum sector, headquartered in Mumbai and a subsidiary of ONGC, majority-owned by the Government of India. HPCL was ranked 367th on the Fortune Global 500 list in 2016 and achieved Maharatna status in 2019.