HPCL likely to borrow Rs 8,000 cr in FY20 to revamp its refineries: Chairman MK Surana


HPCL likely to borrow Rs 8,000 cr in FY20 to revamp its refineries: Chairman MK Surana

Hindustan Petroleum Corporation Ltd, India’s third-largest oil refiner may borrow about Rs 7,000-8,000 crore in FY20 for revamping its refineries at Mumbai and Vishakhapatnam, company’s Chairman MK Surana said in its Q4 FY19 earnings press conference.

In FY19, HPCL borrowed Rs 6,000 crore, Rs 3,000 short-term and long-term each. A large part of the company’s borrowings go into funding its capex. HPCL’s capex for FY20 is pegged at Rs 14,000 crore, as against Rs 11,000 crore last fiscal.

HPCL will be investing a total of Rs 5000 crore for its Mumbai refinery and Rs 21,000 crore for the Vizag’s. The investments will happen over period of time, and also include aligning refineries with the new BS VI regulation norms, with effect from April 1, 2020.

“It may happen for various instruments. We have got a combination of instruments which we use via foreign currency borrowings and foreign currency bonds, and may do in multiple tranches,” said Surana. Read more

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