HMEL to Invest Rs 2,600 Crore in Bathinda Refinery Expansion

HPCL Mittal Energy Ltd (HMEL) aligns a significant growth in Bathinda complex. The firm intends to spend 2600 crore to set up a new petrochemical plant in its Bathinda refinery, over and above venturing into the fuel retailing business to enhance its status in the energy value chain.

The suggested investment indicates the emerging domestic need for value-added petrochemicals and polymers and especially that of polypropylene, which is extensively used in packaging, automobile parts, textiles and consumer goods.

Bathinda refinery by HMEL has already become one of the major manufacturers of polypropylene in India. The facility is also strategically significant because of the fact that it is the only facility that fulfills close to 14 percent of the total polypropylene demand in the country, despite the fact that it is under 14 percent based on the strategy of HMEL's CEO, Prabh Das. The downstream units to be established are set to promote industrialization in Punjab even more, as well as create indirect jobs.

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Alongside petrochemicals, HMEL is also preparing to enter fuel retailing by opening petrol pumps across Punjab. As noted in the statement quoting Punjab Cabinet minister Sanjeev Arora, the proposed fuel outlets will offer petrol, diesel, CNG, and electric vehicle charging facilities, aligning with India’s evolving mobility and clean energy goals.

HMEL is a partnership between Hindustan Petroleum Corporation Ltd and Lakshmi N Mittal Group. It has an 11.3 million tonnes per annum refinery, a 1.2 mtpa polyethylene plant and a 1 mtpa polypropylene plant at Bathinda, which means that it is one of the most integrated refining and petrochemical complexes in North India.