HPCL to stop purchasing diesel from other business next year

New Delhi: Hindustan Petroleum Corporation Ltd (HPCL) will stop purchasing diesel from business like Reliance Industries Ltd and Nayara Energy once it finishes growth of its Visakhapatnam refinery in Andhra Pradesh and constructs a brand-new one in Rajasthan next fiscal year, business authorities stated. HPCL owns nearly a quarter of fuel pumps in the nation however does not have commensurate oil refining capability to produce fuel and diesel. To make up for this, it purchases items from refiners such as Mangalore Refinery and Petrochemicals Ltd (MRPL), Reliance Industries’ Jamanagar systems in Gujarat and Nayara’s Vadinar refinery. At a financier call post revealing 2nd quarter profits, HPCL chairman Pushp Kumar Joshi states the company’s concentrate on capital costs in the last 5 years in “enhancing quality and capability” of possessions has actually “begun yielding outcomes now”. The business has actually currently broadened its Mumbai refinery capability to 9.5 million tonnes per year from 7.5 million tonnes and would finish the growth of Visakhapatnam system to 15 million tonnes next year, he stated. It is developing a brand-new 9 million tonnes a year oil refinery and petrochemical complex at Barmer in Rajasthan at an expense of Rs 73,000 crore. Together with capability addition, the business has actually forayed into brand-new locations like petrochemicals, gas and biofuels company “to offer stability to our balance sheet”, he stated. Providing an upgrade on Visakhapatnam refinery growth job, Joshi stated a 3.05 million tonnes complete conversion hydrocracker system (FCHCU) has actually been commissioned, which will increase distillate yield (production of gas and diesel). The refinery is currently running at 13.7 million tonnes per year capability and as soon as the residue upgradation center (RUF) is commissioned, it will increase to 15 million tonnes. Rajasthan refinery, he stated, is 72 percent total, and commissioning will begin in stages in the next fiscal year. Inquired about the item sourcing mix, HPCL Director (Finance) Rajneesh Narang stated the business’s Mumbai and Visakhapatnam refineries presently offer 43 percent of the fuel and 47 percent of diesel the company
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