Mittal gets his 49 in HPCL refinery

The Union Cabinet on Thursday facilitated steel baron L N Mittal8217;s foray into oil refining by allowing him to pick 49 per cent stake in Hindustan Petroleum Corp8217;s Bhatinda refinery, which would become the single largest FDI recipient in the sector. Mittal Investments plans to acquire the stake in the 9 million tonnes per annum refinery for Rs 3,365 crore through its 100 per cent arm Mittal Energy Investments Pte Ltd. While the current policy permits only 26 per cent FDI in public-sector petroleum refineries, the Union Cabinet made an exception in Mittal8217;s case.

Petroleum minister Murli Deora, whose ministry had sought approval for raising the FDI ceiling to 49 per cent, expressed satisfaction with the clearance, saying it would pave the way for speedy implementation of the project and open large employment opportunities. 8220;The project which has been hanging in the air for the last seven-eight years will now see the light of the day for the benefit of the people of Punjab,8221; Deora said.