Moneycontrol BureauOil major Hindustan Petroleum (HPCL) may soon raise USD 500 million through bond issue, reports the Mint today. The funds will be used for the expansion of its Visakhapatnam refinery and other projects that have been in the pipeline.The Vizag refinery's capacity will be expanded to 15 million tonnes per annum (mtpa) from 8.33 mtpa. The company will also commence a fuel quality upgradation plan to Bharat stage VI.The company had earlier said it would invest around Rs 45,000 crore by 2020 to expand its refineries in Mumbai and Vizag and also enhance its marketing infrastructure.Of the Rs 45,000 crore, a sum of Rs 21,000 crore would go into the expansion of the capacity of the refineries, while Rs 9,000 crore would be used to improve its marketing infrastructure. Another 14,000 crore will be used to promote joint venture refinery projects and the company's natura; gas business. The amount will also be used for upstream oil exploration, the company had informed in March last year.The oil company also intends set up a unit to produce a number of high value petrochemical by-products in collaboration with Gail India in Kakinada in Andhra Pradesh. This would need an investment of roughly around Rs 40,000 crore.
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