The firm also announced a turnaround for its refinery slated for February next year.

“The capacity would be increased by 2006," HPCL director refineries DS Mathur said.

"The cost of the expansion is expected to be Rs 2,700 crore (US$598 million).”

For the year-ended March 2004, the refinery reported the highest ever crude throughput of 7.59 million tonne. The refinery also increased its gross refining margin to US$4.61 per barrel as compared to US$4.40 per barrel for the previous year, according to Mathur.

In related news, Mathur announced HPCL will shut down its 5.5 million tonne Mumbai refinery for maintenance work.

“The turnaround is being carried out after five years," he said.

"Normally such turnarounds are carried out in three to five years to clean the entire refinery. Also, during such turnarounds, the refinery is closed for about 30 days to 45 days. However, HPCL is doing it in 25 days.”

Petroleum product supply to customers would not be affected by the turnaround, Mathur said. The company would stock up products to make up for loss of refining during the 25 days.