By IANS
New Delhi : The cabinet Thursday approved the formation of a joint venture between an arm of the Mittal group and a state-owned oil major for reviving a refinery project in Punjab.
Under the JV, Mittal Energy Investments, an arm of the Luxembourg-based Mittal Investments, and Hindustan Petroleum Corporation Limited (HPCL) will each hold 49 percent equity in the Guru Gobind Singh Refinery and allied facilities at Bathinda, Information and Broadcasting Minister Priya Ranjan Dasmunsi said.
He was briefing reporters after a meeting of the cabinet committee on economic affairs (CCEA) presided over by Prime Minister Manmohan Singh.
Financial institutions will hold the remaining two percent stake in the JV, which will be the largest foreign direct investment in a public sector refinery.
"With the JV, the Bathinda refinery will be revived in a big way," Dasmunsi maintained.
"This will enhance the availability of petroleum products in the north. It will also lead to industrialisation and creation of jobs in Punjab, and will help in the globalisation of HPCL."
The government had approved the Bathinda project in 2000, stipulating that HPCL would induct a JV partner.
However, seeking expression of interest from 17 MNCs did not yield favourable results. Eventually, an agreement with the Mittal was arrived at earlier this year.