BPCL, a PSU oil marketing company, has revised its current year’s capex downwards to Rs 3,618 crore from the budgeted Rs 4,747 crore. Last year too, BPCL had revised its capex downwards from Rs 4,479 crore to Rs 3,546 crore. It may be remembered here that HPCL, PSU refiner, too had cut down its current year’s capex recently from Rs Rs 4081 crore to Rs 2754 crore. According to analysts, non-receipt of subsidies on time has created liquidity crunch for these OMCs who are left with no option but to cut down their capital expenditure programme. For the next fiscal, however, BPCL has planned an expenditure target of Rs 5,250 crore which is 45% higher than the revised estimate for the current year.
BPCL is currently revamping its hydro cracker and setting up new Continuous Catalytic Regenerator (CCR) at Mumbai Refinery which is nearing completion. BPCL is also implementing replacement of CDU/VDU project at the Mumbai Refinery is expected to be completed by December 2014. The project is estimated to cost Rs 1,419 crore.