The break-up of the funding plan consists of: petrochemical capability and enhancing refining efficiencies (Rs 30,000 crore) and fuel proliferation (Rs 20,000 crore). Different investments can be in upstream oil and fuel exploration and manufacturing (Rs 18,000 crore) and augmenting gas advertising infra (Rs 18,000 crore). In addition to, the agency can even make investments Rs 5,000 crore in renewable power and one other Rs 7,000 crore in biofuels.

Privatisation-bound Bharat Petroleum (BPCL) has drawn up plans to speculate over Rs 1 lakh crore within the subsequent 5 years, because the nation’s second-largest gas retailer shifts focus in the direction of petrochemicals, renewables, electrical mobility and different different fuels. Chairman Arun Kumar Singh advised reporters on Monday after the annual common assembly that the corporate was trying to create a 1,000 MW portfolio of renewable energy technology capability, largely by acquisitions whereas it will additionally put money into bio-fuels and hydrogen.

The break-up of the funding plan consists of: petrochemical capability and enhancing refining efficiencies (Rs 30,000 crore) and fuel proliferation (Rs 20,000 crore).

Different investments can be in upstream oil and fuel exploration and manufacturing (Rs 18,000 crore) and augmenting gas advertising infra (Rs 18,000 crore). In addition to, the agency can even make investments Rs 5,000 crore in renewable power and one other Rs 7,000 crore in biofuels.

The concept is to develop a even handed mixture of typical fuels and zero-carbon-mobility, in what would enable a higher diploma of feasibility in changing crude oil straight into high-value petrochemicals. “We’re presently evaluating varied propylene and ethylene derivatives, each within the bulk in addition to area of interest segments,” Kumar mentioned.

The deliberate investments can be funded by inner accruals and debt. The refiner generates round $1 billion in money yearly, out of which 50{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}-60{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} goes in the direction of dividend payouts. “We are going to cut back the dividend payout to generate money,” VR Gupta, director finance at BPCL mentioned.

Requested whether or not the corporate was planning to recalibrate its refineries to compensate for the drop in diesel demand and enhance in demand for gasoline, Kumar mentioned, “If the push to electrical automobiles is accelerated past what we now have factored in and the financial system doesn’t develop past 7-8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811}, diesel can have severe points.” “Nonetheless, petrochemicals will proceed to develop and lot of center distillates will discover strategy to petrochemicals. Our refineries might be recalibrated to satisfy the elevated gasoline demand whereas diesel demand is subdued,” he added.

In September 2021, petrol demand within the nation was 7-8{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} greater than a 12 months in the past, however demand for diesel was nonetheless 6-7{c34e2c9cd63a11c97fab811dbaaefe0cfbb1edd2527888e1a44d36f3491ee811} beneath the year-ago degree, Kumar famous. The corporate additionally plans to spend Rs 18,000 crore in upstream exploration enterprise the place Rs 16,000 crore will go in the direction of Mozambique fuel exploration web site. BPCL expects to renew work shortly on the web site after the safety associated points are resolved. The operator had withdrawn all personnel attributable to safety points in March 2021

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https://www.financialexpress.com/business/future-ready-bpcl-plans-rs-1-lakh-crore-investment-in-5-years/2339191/

Future-ready: BPCL plans Rs 1-lakh-crore funding in 5 years