Kolkata: Hindustan Petroleum Corporation Ltd (HPCL) will invest Rs 6,900 crore to upgrade its diesel quality to Euro III and IV.
"We have commenced capex of Rs 6,900 crore for diesel
hydra treaters in Bombay and Vizag refineries to upgrade the
diesel quality to Euro III and Euro IV," HPCL director
(finance) Bhaswar Mukherjee told a news agency.
"The project would be completed in financial year 2011,"
The reduced under-recovery and ample liquidity has also
helped to reduce the total outstanding debt of the company to
around Rs 18,000 crore, down from Rs 30,000 crore in September
HPCL officials said short-term borrowing cost has also
fallen to around 5 per cent.
According to estimates, under-recovery for the industry
would be around Rs 45,000 crore which had surpassed Rs
1,00,000 lakh crore last year.
HPCL holds total oil bonds worth Rs 9,000 crore in its
books with yeild of around 6.25 per cent.