BPCL-Oman Oil joint venture to raise Rs1,200 crore for Bina refinery

Mumbai: Bharat Oman Refineries Ltd, a joint venture between BPCL and Oman Oil Corp, will raise Rs1,200 crore via an initial public offer (IPO) for setting up its 6 million tonne per year capacity refinery at Bina in Madhya Pradesh.

"While the debt portion of the project cost of Rs10,378 crore, amounting to Rs6,387 crore, has already been tied up, work has been initiated for closing the equity portion," BPCL chairman and managing director Ashok Sinha said.

BPCL and Oman Oil Corp will jointly hold a 52 per cent stake and the remaining 48 per cent will be allotted to private investors and the public, Sinha said.

"The implementation of the project for setting up the refinery is progressing smoothly. Bharat Oman Refineries, the joint venture vehicle implementing the project, has assumed a challenging target of December 2009 for mechanical completion of the refinery," he said.

"The cumulative commitments made on the project have crossed Rs7,000 crore and 26 per cent progress has been achieved by end-August," Sinha added.