Mittal eyes stake in Bhatinda

NRI steel tycoon Lakshmi N Mittal may partner Hindustan Petroleum Corporation (HPCL) in the state-run firm's under-construction $3 billion refinery at Bhatinda in Punjab.

"Mittal Investments and HPCL are close to signing a joint venture agreement for jointly building the 9 million tonne a year Bhatinda refinery," an industry source said.

As per the broad understanding reached between the two firms during preliminary talks, HPCL and Mittal Investments may hold 49 per cent stake each in the Guru Gobind Singh Refinery Ltd, the company implementing the project. The remaining two per cent stake would be offered to financial institutions.

In the likelihood of state-run exploration firm Oil India Ltd (OIL), with whom HPCL had been discussing partnership for the refinery project for some time now, joining in the shareholding may be 26:26:26. The balance would be offered in an IPO closer to commissioning of the refinery.