HPCL had applied to the CCEA seeking permission to go ahead with the project in the absence of a suitable partner. Earlier this year, the West Asia oil company, Saudi Aramco, had chosen to exited from the alliance. Now, HPCL has initiated the process of restructuring the equity of the project. ``We are still deciding on how much equity to offer to the financial institutions - with whom we are in talks at present - who would pump money into the project,'' HPCL sources said.

The hunt for a partner for the Rs 9,806-crore refinery project will, however, continue as the CCEA has okayed the entry of a partner company at any stage of the project, the sources said.

``We are looking at a partner not merely to share the financial burden but so as to add value in terms of technical expertise, the sources said. ``Our doors are open and we are willing to discuss the project with potential investors.''

According to the original proposal prepared by the company, HPCL and the Punjab State Industrial Development Corporation were to hold a 26 per cent stake each - the remaining 48 per cent was to be held by the FIs.

``The absence of a partner company is not an impediment and, going by our own experience, we are capable of undertaking projects of this nature on our own,'' added the sources. The company has inhouse expertise in undertaking the project as well as laying pipelines for the crude, it is learnt.

The company has been negotiating for a partner after the original partner, Saudi Aramco, backed out after it realised that there was little money in refining compared to retailing outlets.

HPCL is presently enagaged in constructing the foundation of the refinery. ``We have already invested Rs 300 crore,'' said the sources. ``The work for acquiring about 2,000 acres of land for the project has also been completed.'' The company also obtained permission to set up a 500-MW power plant inside the refinery to meet the power demands. The refinery will be commissioned in 2006-07, and will cater to the requirements of the northern belt. The refinery will receive crude through a pipeline more than 1,000 kms from Gujarat.