India’s second largest state run refiner Bharat Petroleum Corp said that it plans to raise INR 1,000 crore (USD 215 million) in a bond sale to fund regular capital expenditure.

Bharat Petroleum in a statement said that the bonds maturing in October 2012 will pay 7.73% interest.

As per report Bharat Petroleum plans to increase spending 26% to INR 3,000 crore in the year ending March. Mr S K Joshi director of finance said that it is expanding its refining capacity to meet demand for fuels in the world’s second fastest-growing major economy.

Bharat Petroleum is increasing capacity at its 7.5 million metric tonne-a year refinery at Kochi in the southern state of Kerala to 9.5 million tonnes and building a 6 million tonne plant at Bina in Madhya Pradesh state in central India. Work at the two plants will be completed by December.

(Sourced from Business Standards)