Mittal Investments has signed a Memorandum of Understanding (MOU) with HPCL, Oil India, GAIL and France’s Total S.A. to develop a refinery and petrochemical plant in Visakhapatnam. LN Mittal group will also be working with HPCL to set up a refinery in Bhatinda, Punjab. The Bhatinda refinery project has been delayed for many years due to political issues and Mittal Group was successful in picking up 49% stake in the project.

In the statement issued, HPCL CMD Mr. Arun Balakrishnan said, "We have signed a memorandum of understanding to study the feasibility of a refinery and a petrochemical complex. We expect to receive the report by March."

The estimated cost for the project at Vizag, Visakhapatnam is around $6 billion. The petrochemical unit will have a processing capacity of 15 million tonnes of crude per annum. As per the statement of HPCL CMD Mr. Balakrishnan, the unit will also produce around 1 million tonnes of olefins and other petrochemicals. He further added that HPCL will start producing Euro-IV quality petrol by March next year. The project might be set up under SEZ scheme at Vizag.

Mittal Group is ready to enter oil exploration & production sector as well. Mittals have earlier signed joint ventures with ONGC for oil transportation and acquiring acreages.