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226 Lutera HMEL The Guru Gobind Singh Refinery project, was announced in 1995, Harcharan Singh Brar (Congress) was CM Punjab, and P. V. Narasimha Rao (Congress) was PM of India. HPCL Major oil importing sources for India are Saudi Arabia, Russia, the US, Iran, Iraq and the Emirates. Planning Commission made move for scuttling 2000 acres of land was acquired in 1998. Atal Bihari Vajpayee laid the foundation stone in 1998, but later estimated to cost was Rs 9,806 crore and, in addition, Rs 2,500 crore were to be spent on a pipeline from the crude oil terminal at Mundra 1006 km long pipeline Badal 1997 - 2002 ……………………………………… About 806 hectares of land was acquired for the project. Rs 136 crores were spent on it. The project includes the construction of a 9-mmtpa grassroots refinery with a 140-mw captive power plant. It would have a single mooring 1,006-km long pipeline from crude oil terminal at Mundra. total cost of the project was estimated at Rs 16,000 crore Amrinder Singh as CM, state government agreed to grant interest free loan of Rs 250 crores per annum for first five years amounting to Rs 1,250 crore. It also offered exemption from electricity duty on generation of power for own consumption for 15 years from date of commencement of commercial production. State also agreed to share 50 per cent of infrastructure development cost for refinery, deferment of CST to the maximum of 300 per cent of fixed capital investment for 15 years On 15 August 2005, much-delayed 9 mmtpa Bathinda refinery has finally started. ……………………………… World's largest steel maker and the third richest man in the world, Lakshmi Nivas Mittal was born on June 15, 1950 at Sadulpur, in Churu district of Rajasthan. At that time, L N Mittal had entered the energy sector by forming a joint venture with Oil and Natural Gas Corporation (ONGC) of India to invest in E&P assets in selected countries. This joint venture, ONGC-Mittal Energy Limited (OMEL) had oil and gas assets in Syria and Nigeria, partnered with TOTAL of France. He did not shown any interest to enter into SGGS refinery Bathinda, in 2006, when British Petroleum drawn from it, and HPCL was in search of partner The India-born billionaire has already pulled out of HPCL's proposed USD 6-billion refinery-cum-petrochemical project proposed at Vizag in Andhra Pradesh. …………………………… On 1st March, 2007 S Parkash Singh Badal became the CM of Punjab. Probably, In mid March, Mittal incorporated its subsidiary, “Mittal Energy Investments Pte Ltd”, in Singapore. As a result of joint efforts of PS Badal and L N Mittal, they successfully approached the ministry of petroleum of India. On Wednesday, 25 July 2007, Punjab Chief Minster Parkash Singh Badal accompanied by Sukbir Badal and Steel Baron Lakshmi Narain Mittal met Union Petroleum Minister Murli Manohar Deora's at his office, and asked him for expeditious execution of this prestigious project by December 2010 Mittal Investments S.a.r.l, Mittal Group presented a cheque for Rs. 500 crore as part of their equity contribution in the JV company, Guru Gobind Singh Refinery Ltd (GGSRL). This marks the formal participation of MI through its 100% subsidiary Mittal Energy Investments Pte Ltd. as joint venture partner of HPCL in GGSRL. Bathinda in Punjab. Rs 20,000 crore Guru Gobind Singh Refinery undertaken by HPCL-Mittal Energy Limited (HMEL) Mittal praised the Government for giving expeditious approval for the JV project He informed that they signed the JV agreement in March 2007 and by June 2007, the approval was granted. ……………………………. On November 14, 2007. The Board of Guru Gobind Singh Refineries Ltd in its meeting in Mumbai, approved changing name of the company from “Guru Gobind Singh Refinary” to “HMEL” (HPCL-Mittal Energy Ltd), Kanwaljit Singh said: "This changing of name from Guru Gobind Singh Refineries Limited to HPCL Mittal Energy is wrong CM Punjab PS Badal and his son Sukhbir Singh, kept their lips closed, and consented with Mittal. on Sep 9, 2009, that Punjab CM as Chairman of GMADA allotted 3242.8 square yards, of plot in sector 79 of Mohali allegdly to the Batinda refinery, but on the name of “HMEL”, ………………………………… Mar 30, 2009, 23:37 Steel czar Lakshmi N Mittal threatened to stop work unless the state government restored the fiscal incentives fiscal concessions like sales tax waiver On 9 September 2009, HMEL officials told the Punjab government that the pipeline’s annual carriage capacity, initially envisaged at 9,000 million tonnes, is being doubled to 18,000 million tonnes. HMEL chairman Arun Balakrishnan and chief executive Prabh Das met Punjab Chief Minister Parkash Singh Badal and other top officials of the state government. Das said apart from the Rs.18,900 crore initial outlay for the refinery, an additional Rs.5,000 crore was being spent on the Gujarat-Bathinda pipeline and another Rs.1,000 crore on an offshore port for importing crude oil from Iraq, Iran and Saudi Arabia Status of Project as of 31th December, 2010. The Mittals had recently arranged Rs 7,793 crore from a consortium of 26 lenders to fund the debt portion of the project State Bank of India led consortium of 26 lenders following companies
Future ambitions of Mittal On July 05, 2007 it was said that, Guru Govind Singh Refinery Ltd (GGSRL), plans to raise $1 billion in foreign borrowings, that was equivalent to INR 35 Arab, over four years to fund the project. The company is in the process of firming up Rs 8,000 crore loan from a consortium of 26 banks led by State Bank of India for the project.
On February 18, 2010, it was said that, The Lakshmi Niwas Mittal group companies in India are looking to raise USD 400 million via external commercial borrowings. Sources say HPCL Mittal Energy (HEML), is looking to raise USD 200 million for refinery at Bathinda, and HMPL, which is an HMEL subsidiary, is looking to raise USD 200 million via ECBs to lay a pipeline from Kandla to Bhatinda. SBI will take the issue to the markets in two-three weeks, it is learnt. The tenure for both issues, sources said, was for six years and the companies hope to get funding at a rate of LIBOR + 425 basis points (4.25%).
It is now also said that Lakshmi N. Mittal and HPCL are planning to sell 10% stake each in the Bhatinda refinery, through an Initial Public Offering (IPO). The IPO is likely to take place around March 2011 to April 2011 and is expected to raise INR 10 billion to INR 15 billion.
Now, HMEL is seeking from Punjab Govt. Manpreet, who as finance minister was leading the high level committee set up by the Punjab government in 2007 to talk to the refinery authorities,
argument given by the refinery authorities that more concessions need to be given in view of the global downturn post-2008 The incentives sought by the refinery authorities include an interest subsidy for a period of 15 years, funding of 100 per cent interest cost for investment made in petrochemical units and a soft loan of Rs 1,000 crore.
As per other sources, Rs 400 crore per annum as interest free loan for the first 15 years from 2011-12 to 2025-26 which is to be paid back per annum from 16th year-2026-27 onwards for the next 15 years. Now they are demanding a total interest-free loan amounting to Rs 6,000 crore,”
Plus other incentives offered on 12 august 2005, by Amrinder Singh Govt.
At present, the state government has offered an incentive of Rs 250 crore per year interest-free loan to the Mittals for five years, and some other incentives.
HMEL will produce the following products
Liquid Products : Those will be marketed by HPCL are Motor Spirit, High Speed Diesel, Superior Kerosene Oil, Aviation Turbine Fuel, Liquefied Petroleum Gas, Naphtha, Hexane, Mineral Turpentine Oil.
Solid Products : Those will be marketed by Mittal Energy Pvt Ltd are Polypropylene, Pet Coke, and Sulphur. Estimated Composition of Crude Oil is as: Premium Petrol 15%, Regular Petrol 15%, Jet, DPK 15%, Diesel 30%, Fuel Oil 10%, Bitumen 3%, Sulphur 2%, propane gas for PolyPropylene and loss 10%.
Engineers India Limited (EIL) is managing the engineering, procurement and construction for the refinery project.
Punjab Govt and industry is nothing to gain from it. Punjab has no nominee neither in board of directors nor in management labour is about 30,000
over 50 were injured. All immunities are provided by Punjab Govt and Mittal is providing deaf ear. On December 20, 2010, Public Relations Officer Waheguru Pal Singh added that three ambulances are placed in the campus for the safety of workers we provide them height safety belts, helmets of good quality and pair of boots. In the starting of the winter new jackets and quilts have been distributed these workers. After the incident, we immediately rushed them to the hospital where all died. Compensation has been given to their family members by Punjab Govt,"
Nutshell, approximate value per year of incoming crude oil and other related items will be more than Rs 30,000 crores and value of finished liquid and solid outgoing products will be about Rs 40,000/ crores. It calculates that different taxes may be between Rs 5,000/ crores to Rs 10,000/ crores per year. On the calculation of fifteen years it becomes Rs 75,000/ crores to 150,000/ crores.
Compound interest for fifteen years on Rs 6,000 crores, becomes about 20,000 crores. Calculating all these, Mittals are asking from Badals, to give incentives totaling Rs 100,000/ crores to 150,000/ crores, on the price of loss to Punjab. That is double than the total debt on Punjab. It is a token of the “Seva” by P S Badal, and “Vikas” of Sukhbir Singh Badal, towards Punjab. . Faceboo Account: Harbans.Singh.Jalal; Facebook Group: Punjaap (Public); Faceboo Group: PUNJAAP Punjab Aadmi Party (Close); Twitter Account: JalalHarbans; Twitter: Punjaap1; YouTube Channel: PUNJAAP Punjab Aadmi Party; www.punjaap.in harbansjalal@gmail.com punjaap@yahoo.in 9872535400 |