Problems faced by Bharat Heavy Plates and Vessel, the supplier of critical equipment like heaters, quench tower and boilers, could affect the implementation schedule of HPCL's Mumbai refinery upgradation project. BHPV is facing a financial problem and is also encountering manpower shortage due to VRS implemented by the company. The project was to be completed by July 2007, but given its current status, the project may not be complete before September. The company is also facing problems with the Maharashtra government over land acquisition.
The upgradation project involves de-bottlenecking of the primary and secondary processing units at the refinery. The upgradation has become necessary since the Union government decided to implement Euro III and Euro IV vehicular emission norms in phases by 2010.