The Steel King LN Mittal is rapidly turning into an oil giant because of his jump in oil sector.
Mittal group has been entered into the oil exploration market and the group is buying 49% stake in Guru Gobind Singh Refineries. Mittal group will be the equal partner with the Hindustan Petroleum Corporation (HPCL).
It has planned to revive the Rs 16,000 crore refinery-cum-petrochem project situated in Bhatinda, Punjab.
Mittal is ready to invest more than Rs 3,000 crore as FDI, through his Luxembourg-based Mittal Investments Sarl.
Further, Mittal group would be a partnership in the 1,100-km pipeline project laid by Hindustan Petroleum. With this pipeline the crude oil will be transported from Mundra port in Gujarat to the refinery.
However, the HPCL board has been cleared the FDI proposal from Mittal Group but the board is in dilemma on the selection of banks and financial institutions that would hold the remaining 2% stake.
According to the report, the deal is all set to be announced on Tuesday and the agreement will be signed next week.
A top petroleum minister said;
For the last eight years, the project only had foundation stones. Now it will create 10,000 jobs and get huge FDI.
Earlier, HPCL had made a deal with British Petroleum but it walked out of the project. The Government officials, reportedly, had tried to convince the BP brass in London but they refused to go with deal by saying that the project is not viable.
Now, Mittal is ready to join hands with HPCL to restore construction at the refinery complex. The construction would start soon as the connectivity and other infrastructure are already in place.
The project has paved the way for Mittal into the oil refining business. Apart from this Mittal has been already formed an exploration joint venture ONGC-Mittal Energy Ltd, with ONGC for getting hold of oilfields abroad.