State-run Hindustan Petroleum Corporation's (HPCL) Bhatinda refinery in Punjab will be commissioned by the first quarter of 2011, said a senior official from the company.
"The refinery is around 25 percent complete and would be operational in two years," said K Murali, director refineries, HPCL on the sidelines of an energy conference in Mumbai.
Bhatinda refinery, which will have a production capacity of 9 million metric tones per annum when complete, is an equal joint venture project entered into by HPCL and Mittal Energy.
The two parties hold 49 percent stake each in the venture while the remaining stake lies with financial institutions. The joint venture is being financed in a 1.5:1 debt-equity ratio with an equity contribution of Rs 3,800 crore each by HPCL and Mittal Energy.
The cost of the project is Rs 18,000 crore, of which Rs 12,000 crore has already been committed, Murali added.
Early this year, HPCL's refinery and petrochemicals project at Visakhapatnam, Andhra Pradesh, was put on hold due to low demand for petroleum products in a slowing economy. Murali said the refinery is on hold as the company is still assessing the demand situation.
