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Article from Business Standard,29th April,2012

By Pranab Kumar Meher

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HPCL-Mittal Energy Joint Venture

Bathinda refinery, a project of HPCL-Mittal Energy

Joint Venture, starts operations on 29th

April,2012.

The Bathinda refinery is the 24th in the country,whichalready has a surplus refining capacity of 71 million

tonnes.

The refinery is estimated of Rs 21,500 crore.

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Project Overview It is built in record 42 months and is Mittals first

greenfield project in India. Finally, an LN Mittal project

kicks of in India.

The refinery has a capacity of processing nine milliontonne of crude a year (180,000 barrels per day) and built by

HPCL-Mittal Energy Ltd.

Mittal has invested in the venture through Mittal EnergyInvestment Pte Ltd, Singapore.

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`Failed Attempts of Mittal in India The starting of the refinery's operations comes after

Mittal's earlier two attempts to carve out a space in the

Indian oil industry failed.

His venture with HPCL for a petrochem hub at Vizag failedto go beyond preliminary study.

His oil shipping venture with state-run explorer ONGCnever took off, while another tie-up with ONGC foracquisition of overseas acquisitions fizzled out, whiletrying to access fields in Kazakhstan.

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Benefits of the Bathinda Refinery

It would cater to the inland petroleum demand in Punjab,

J & K, UP, Uttarakhand, Haryana, Rajasthan and Delhi.

It will help cut down on the cost of transporting productsfrom far away refineries to Northern India.

HPCL which currently depends on Reliance Industries andEssar, will now directly source products from the refinery inBhatinda.

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Advantages of Joint-VentureWith the Joint-Venture, the Bathinda refinery has

Nelson Complexity Index, which enable it to maximise

value-added products even from heavy/sour crude oil.

Besides the refinery, HMEL has also diversified intoupstream oil and gas exploration.

The Joint-Venture has participating interests in threeblocks in the country.

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Effects on Imports and Exports

With an increase in refinerys capacity to 18mt infuture, it could boost Indias exports and open fuel

sales to Pakistan.

Pakistan has allowed the import of fuels, includingpetrol and diesel, from India in November last year.

As the distance between Bathinda and Lahore is about160 Km, there would be a rise of export of fuels.

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The refinery's proximity to Pakistan will allow HPCL-

Mittal to export fuels through pipeline and offer morediscounts than its rivals.

The refinery is adding to India's oil refining capacity,

which is to rise by 15% to 214 million tonnes a year bythe end of current fiscal.

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