Chairman and managing director HL Zutshi said HPCL was gearing itself to meet the challenges of the rapidly changing business scenario in the petroleum industry and the proposed plans included introduction of value added and environment friendly products, new products pipelines, development of marketing and infrastructure facilities and investment in joint ventures.

A major business process re-engineering programme was initiated with a view to improve its competitive positioning in line with the deregulated market place, he said.

The company had already incurred a capital expenditure, including investments in JVs, of Rs 1,705 crore on various new and ongoing projects during 1998-99 which was financed through internal resources generated, proceeds from warrant conversion and partialredemption of oil bonds by the Government.

Of these, five major projects involving investment of around Rs 343 crore has already been commissioned during the year which included 13 new POL depots with a tankage capacity of 3,17,290 kl and additional tankage capacity of 1,15,300 kl at nine existing locations.

In 1998-99, HPCL reported a turnover of Rs 26,000 crore and net profit of Rs 901 crore and has proposed a dividend of 110 per cent besides a bonus issue at the rate of one share for every two equity shares held.

Zutshi said another five projects worth Rs 3,000 crore would be commissioned during 1999-2000.

He said expansion of Vizag refinery from 4.5 mmtpa to 7.5 mmtpa, including FCCU revamp at a cost of Rs 1,138.02 crore is expected to be completed by next month while mechanical work for hydro-desulphurisation of diesel for meeting the revised stringent specification of 0.25 wt per cent sulphur content at both Mumbai and Vizag refineries at a total cost of Rs 1,552 crore has beencompleted.

Giving details of major projects under development, he said HPCL decided to set up a marketing terminal at Uran for coastal inputs of POL products and to meet the increasing demand of petroleum products in the region which will be hooked by pipeline to the Vashi terminal at a cost of Rs 80 crore. Additional tankages of 42,800 kl in Mumbai and 40,000 kl at Uran would also be set up, he added.

Dockline between jetties and terminal at kandla and atvisakh would also be taken up involving cost of Rs 35 crore with a completion schedule of 24 months from the date of approval.

He said it is envisaged in the Ninth Plan to release a large number of new enrollments in urban and rural areas and to meet additional demand LPG bottling plants at various locations with total capacity of 798 tmtpa would be set up at an estimated cost of Rs. 767 crore.

Construction of plants at seven locations has been taken upand the balance plants would be set up in phases on the basis of demand in various parts of thecountry, he added.

Mr Zutshi informed that the corporation has obtained stage-Iclearance from government for extending Vizag-Vijayawada pipeline (VVPL) upto Secunderabad with marketing terminal at Suryapet to cater to the increasing demand of petroleum products in telangana districts of andhra Pradesh. The length of pipeline is approximately 234 km and the project is estimated to cost Rs 344 crore.