Besides HPCL, the Andhra Pradesh SEB and a joint venture partner will pick up 24 per cent each of the total equity of Rs 662 crore, while the rest would be offered to the FIs and the public.

The company is now preparing a detailed feasibility study and looking for a suitable power generation company to join as a JV partner.

While HPCL is setting up a 9 mmtpa grass root refinery with a captive power plant in Bhatinda in Punjab at a cost of Rs 11,000 crore, it has dropped its plans to set up the west coast refinery project at Guhaghar in Maharashtra.

The Bhatinda project would be financed through debt equity ratio of1.5:1 with a Rs 1,144 crore equity contribution from HPCL. The corporation has sought the permission from its shareholders to invest in the power and refinery projects.

The corporation is also entering the oil exploration and production sector with an investment of Rs 3,000 crore in both India and abroad. The project will be finance through a debt equity ratio of 2:1. The JV company will have a equity participation from ICICI, TDICI Ltd, HDFC with an authorised capital of Rs 20 crore. HPCL will hold 50 epr cent stake in this company while the rest would be shared by the JV partners.