Bharat Petroleum Corp Ltd, which is expanding its Mumbai refinery to 12 million tonnes, will invest another Rs 1200 crore (Rs 12 billion) to produce auto fuel compliant with Euro-IV emission norms.

"The expansion of Mumbai refinery to 12 million tonnes from 8.76 million tonnes per annum by March 2005 will enable us to produce petrol and diesel compliant to Euro III fuel emission norms. Further we have planned an investment of Rs 1200 crore to produce Euro IV fuel," BPCL director (refineries) Mukesh Rohatgi told reporters in Mumbai.

He did not say by when the investments will be made. "We are in the process of finalising the project," he said.

BPCL is investing Rs 1,831 crore (Rs 18.31 billion) in expanding its Mumbai refinery to produce Euro III compliant diesel and another Rs 110 crore (Rs 1.10 billion) for producing cleaner petrol. It has lined up another Rs 318 crore (Rs 3.18 billion) in setting up a unit to produce base oil.

The expansion will happen simultaneously with its planned extension of the Mumbai-Manmad-Indore pipeline up to Delhi.

Rohatgi said the extension of the pipeline may entail an investment of Rs 750-800 crore (Rs 7.5-8 billion) and work on the project may start in few months from now. "It will take anything between 24 and 30 months to complete the pipeline expansion."