Infrastructure Financing

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PROJECT REPORT
ON

TECHNO – FINANCIAL FEASIBILITY OF DIESEL HYDROTREATMENT (DHDT) AND PURCHASE PROCUREMENT OF BONGAIGAON REFINERY & PETROCHEMICALS LTD. (BRPL)

At

INDIAN OIL CORPORATION LIMITED

Submitted in partial fulfillment of requirement of PGDM program of JIMS

SUBMITTED BY:
SHRUTI (FB10111)

JAGAN INSTITUTE OF MANAGEMENT STUDIES, ROHINI
EXECUTIVE SUMMARY

I, Shruti, student of batch 2010-12 at Jagan Institute of Management Studies (JIMS), Rohini, did my Summer Internship Programme with Project Department of Indian Oil Corporation Ltd for 9 months. Project Title and Summary

I was assigned the task of undergoing a study on the Project Appraisal and analysing Techno – Financial Feasibility of the Diesel Hydro-Treatment project followed by the task of Purchase procurement at Bongaigaon Refinery & Petrochemicals Ltd (BRPL). As per the Auto Fuel Policy announced by the government on 21st October, 2003 which is the road map for implementation of Vehicular Emission Norms for new Vehicles according the specification of Euro – III and Euro – IV. Therefore, BRPL has proposed to set up Diesel Hydrotreatment facilities to produce HSD conforming Euro – IV equivalent specification to be implemented by 1st April, 2010. The cost incurred in the project is Rs. 1420 crores. The fund for this project will be financed by Debt and Equity in the ratio 1:1. Equity is internal accruals here and the debt is the term loan. The Techno – financial feasibility for the project has been done. For Financial appraisal various techniques have been done like NPV, IRR, cost of capital, various measures of risk analysis. Projected cash flow is prepared for 15 years. IRR for the project is 17.66% and NPV for the project is positive. The coverage ratio for the project is sound. Various sensitivity cases for the project have been done and reasons for the deviation has been found. The recommendations to the company w.r.t. the project and from the...
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