The ONGC-run Hindustan Petroleum (HPCL) today said it will invest around Rs 75,000 crore towards capex over the next five years, of which around Rs 8,425 crore will be invested this financial year.
Most of the capex will be spent on capacity expansion both in greenfield and brownfield projects, the company chairman and managing director M K Surana told reporters at a post AGM press meet this evening.
“We have lined up capex plans of Rs 75,000 crore for the next five years. On an average we have been investing around Rs 6,000 crore per annum in capital expenditure. But during the current fiscal we are investing Rs 8,425 crore as we are coasting along to complete the expansion of our capacities at Vizag and Mumbai refineries at a faster clip,” the chairman said.
Most of the announced capex will go into the over Rs 43,000 crore new refinery coming up in Rajasthan and the over Rs 22,000 crore expansion of Vizag facility, he said.
As to the current year’s capital spending, finance director J Ramaswamy told PTI that around Rs 3,000 crore will go into these brownfield expansions and over Rs 1,000 crore into procuring LPG cylinders and an equal amount into marketing and other business development activities.