BPCL plans to expand board
Having received the Maharatna status, state-run oil marketing company Bharat Petroleum Corporation (BPCL) could look to add new roles at board level with business development being one of them, given the thrust the company is laying on expanding its global business.
“With the Maharatna status conferred upon us, the government has opened up the leadership pipeline for the company. The kind of global expansion the company is looking to have, there is need to have a business development official at the board level,” D Rajkumar, chairman and managing director, told Business Standard at a press meet after the company’s annual general meeting in Mumbai on Tuesday. Currently, BPCL's competitor Indian Oil Corporation (IOC) has a planning and business development official on its board.
“Apart from business development, requirement of a board member for the research & development (R&D) segment could also arise but this addition could be made only as and when required. As of now, the need for a planning and business development role at board level looks important,” he said.
Though BPCL may decide on expanding its board, a final approval for any addition at board level has to come from the government. Due to the Maharatna status, the company will be able to raise cheaper funds and make investments of up to ~5,000 crore in a single project from the earlier ~1,000 crore.
On the $40-billion mega refinery being planned in Maharashtra, where the project is facing local agitation for land acquisition, Rajkumar said, “We have been having meetings with Maharashtra government as latest as Monday and are hopeful we will meet the project implementation deadline of 2018.”
The Maharashtra Industrial Development Corporation is taking care of the land acquisition process for this project to be set up in Ratnagiri district.
The upcoming 60-million tonne refinery-cum-petrochemicals complex is expected to be commissioned by 2022 and has IOC, BPCL and Hindustan Petroleum Corporation as its stakeholders.