Oil India may take 25% stake in Bhatinda refinery

After failed partnerships with British Petroleum and Saudi Aramco, Hindustan Petroleum Corporation (HPCL) has roped in state-run Oil India (OIL) to take stake in its $3.5 billion Bhatinda refinery project in Punjab.

OIL, India's second largest oil producer, is likely to take 25% stake in the 9-million tonne refinery that is scheduled to come-up by 2011, M B Lal, chairman and managing director of HPCL, said.

"We have offered OIL to become equal partners in the Bhatinda refinery," he told PTI over phone from Mumbai.

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

The OIL board had, on September 5, found the HPCL offer "attractive" but has not yet officially communicated its intent of picking up stake.

Lal said 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 would make an initial public offering (IPO) for the rest of the equity.