The union cabinet on Wednesday permitted oil marketer Bharat Petroleum Corporation Ltd. (BPCL) to increase its investment in Bharat Oman Refineries Ltd. (BORL) up to a maximum of Rs.3,000 crore to further increase the capacity of BORL's Bina refinery in Madhya Pradesh.
"The infusion of funds by the BPCL will enable BORL to overcome implications arising out of erosion of its net worth," a cabinet communique said here.
BORL is a joint venture company promoted by the BPCL along with Oman Oil Company Ltd.
BORL "proposes to undertake a debottlenecking project at the refinery to further increase the refining capacity from six million tonnes per annum to 7.8 MTPA. The estimated project cost is Rs.3,072 crore," the statement said.
"The highlights of the proposal for debottlenecking project include certain modifications to produce products in accordance to the new auto fuel policy," it added.
Pointing out that the Oman Oil company had indicated it is not prepared to commit further funds for the project at this stage, the statement said the BPCL Board, therefore, decided on this investment for the project and "for meeting the extraordinary losses suffered on account of the sharp fall in the (international) prices of crude oil and finished products".
--IANS
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