HPCL offers 50% stake in Bhatinda unit to OIL

Hindustan Petroleum Corporation (HPCL) has offered up to 50% promoter stake in its proposed $3.3 billion Bhatinda refinery to Oil India (OIL), M B Lal, chairman and managing director of HPCL, said.

Promoters can hold a maximum of 50% in the Guru Govind Singh Refineries (GGSRL), the company implementing the project. "OIL can have as much equity as HPCL in the project," he added.

Lal said OIL's initial response to the offer was "encouraging" but the final numbers will depend on their due diligence of the project.

Promoters have to pump in about Rs 6,000 crore equity in the Rs 14,144 crore project. After the promoters equity is tied up, GGSRL will make an initial public offering (IPO) for the rest of the equity.