Energy stocks are trading in the green led by Essar Oil and MRPL. According to a leading financial daily, Bharat Petroleum Corporation Ltd. (BPCL) has received the environment clearance from the Ministry of Environment & Forests for its integrated refinery expansion project (IREP). The project envisages increasing the capacity of the refinery by 6 million tonnes (mt) per annum to 15.5 mt from the present 9.5 mt. The estimated cost is Rs 142 bn and it is scheduled to be completed by December 2015. The company also plans to modernise the refinery to produce auto-fuels complying with Euro-IV and V specifications, upgrade low value refinery residue stream to value-added products and produce propylene, a major petrochemical feedstock. BPCL plans to utilise propylene to make petrochemical products like acrylates and super absorbent polymer that are predominantly imported into the country.
Finance stocks are trading strong led by J M Financial and Sundaram Finance. According to a leading financial daily, Power Finance Corporation (PFC) and Rural Electrification (REC), have jointly agreed to equally share the funding of expansion project of Odisha Power Generation Corporation ( OPGC), a joint sector company of the Odisha government and AES of USA. OPGC has tied up the funds for 1,320 Mw expansion project at its 420 Mw Ib Valley power station. PFC and REC will equally share Rs 86.6 bn loan component of the expansion plan whose total cost is pegged at Rs 115 bn. The project is being funded on a debt equity ratio of 3:1. The equity component of Rs 28.8 bn will be borne by OPGC. The Odisha government holds 51% stake in OPGC with AES having the rest 49% shares.