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Monday, September 21, 1998

HPCL files Rs 270 cr insurance claim for Vizag refinery blaze

PRESS TRUST OF INDIA  
VISAKHAPATNAM, Sept 20: The state-owned Hindustan Petroleum Corporation Ltd (HPCL) has made an insurance claim of Rs 270 crore for the damage its refinery suffered from a blaze in September last year that left 60 dead. It has taken a year for HPCL to rebuild the fire-ravaged facilities to restore full capacity utilisation even as the chilling memories of the devastation linger.

Detailing the rebuilding process, ranging from production facilities to accounts books to an effective fire fighting system, HPCL's director refineries D S Mathur and general manager in-charge K Murali said six sub-stations, about 20 storage tanks and a number of other installations were devastated by the inferno.

The corporation has made a claim of Rs 120 crore from a consortium of insurers led by New India Assurance company for damages to property and material, besides seeking another Rs 150 crore for loss of profits. ``We claimed Rs 150 crore only two weeks ago for production loss during the year-long reconstruction work, butit will take some time for settling the dues,'' Mathur added. On their part, insurers have already made an ``on account'' payment of Rs 125 crore to the corporation during 1997-98, Murali said adding that reconstruction budget had reached Rs 85 crore till now and could go up to Rs 120 crore.

As per the audited accounts of the corporation for the year 1997-98 a total of Rs 49.29 crore had been written off due to damages and losses in respect of fixed assets, capital work in progress, stocks, stores and spares.

Besides, identification was in progress in respect of fixed assets with the book value of Rs 26.6 crore whose original loss was Rs 11.28 crore, it said adding that a sum of Rs 15.81 crore was spent under incidental expenditure such as ex-gratia for deceased and injured persons and fire fighting expenses.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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