Mumbai: Bharat Petroleum Corp. Ltd will invest Rs 200 crores in a new 120,000-barrel-per-day refinery in, the company said on Friday.
Bharat Petroleum's board had cleared on October 28 the increase in investment in the new refined by nearly Rs 200 crores.
It will hold 50 per cent of the refinery project, Bharat Oman Refineries Ltd, in which Oman Oil Company Ltd. holds 3 per cent.
Bharat Petroleum is planning a Rs 100 crore initial public offering of 25 per cent for Bharat Oman in about two years, while the remaining 22 per cent would be offered to financial institutions or a strategic partner.
The refinery will be built at a cost of Rs 90 crore at Bina in the central state of Madhya Pradesh and is likely to be commissioned by December 2009.
The project also includes a crude oil terminal at Vadinar in the western Indian state of Gujarat and a 935-km crude oil pipeline connecting Vadinar to Bina.
Bharat Oman has received tax concessions worth Rs 25 crore a year from the Madhya Pradesh government and also a 15-year sales tax waiver from the federal government.
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