CPCL is set to infuse Rs 1000 crore from its parent company (IOCL). The proposal to issue preference shares to IOCL to raise the capital has already been approved by the company’s board and shareholders.
CPCL is also pining its hope on Rs 3110 crore Resid Upgradation project , likely to commission by July next year. The scheduled date of completion of project has been extended from Decemeber 2015 to July 2016, as it was not able to secure a clearance from Ministry of Environment & Forest, which resulted in re tendering for certain contracts.
According to the company’s annual report, the project will help the company to capitalise on its distillates yield.
CPCL is investing Rs 279 crore in building a mounded bullet storage facility. The company is also Rs 257. 87 crore to replace the 45 year old crude pipe from the Port to Manali Refinery with the new one. They have already secured a coastal regulatory zone clearance from the Ministry of Environment & Forest in January 2014. In April 2014 they also managed to seek the approval of Ministry of Road Transport and Highways. The Petroleum and Explosives safety organisation has also given their consent to this Project.
The project is expected to be completed by end of November 2016.
With this project the company is expecting that its diesel hydro-desulphurisation capacity will increase from 1.8 million tonnes per annum mtpa to 2.34 mtpa. This will further lead to produce hydro treated diesel with less than 10 ppm of sulphur.
The company hopes to commission the project by March 31, 2017.
The company has reported a huge financial loss in past four financial year. For 2014-15 they had booked the loss of Rs 38.99 crore. The net worth of the company fell from Rs 1722 crore on March 31, 2014 to Rs 1655 crore on March 31 2015, mostly due to a steep fall in crude oil and product prices.
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