Indian Oil Corp. (New Delhi) has announced that it will achieve financial closure for its proposed USD 6.5 billion Paradip refinery project by the end of 2008. The company will finance the project through a combination of debt and equity. The debt component of USD 3.9 billion will be met through domestic and overseas borrowings. Another state-owned oil company, Bharat Petroleum Corp. Ltd (Mumbai), is setting up a 9 million-ton-per-year refinery at Bina in Mahya Pradesh. Hindustan Petroleum Corp. Ltd (Mumbai) is also participating in the government’s capacity enhancement plans with its proposed refineries in Bhatinda and Rajasthan. The total capacity addition planned by oil companies in India is 86 million tons per year by the end of the Eleventh Five Year Plan (2007–12). Most of this new capacity will cater to the export markets.
