HPCL Revamps Ways of Capital Budgeting

11.12.2009
Getting into the Fortune 500 isn't easy, but living up to it is even more difficult. Ask Hindustan Petroleum (HPCL) . Established in 1952, the company operates from 500 different locations, including refineries, terminals, LPG plants, aviation service facilities, etcetera.

-- The implementation of the new online system entailed a paradigm shift from the way the entire capital budgeting process was being carried out.

-- Any capital investment proposal from any operating location in the country can be routed to relevant reviewers and approving authorities

"Each year, over 2,000 budget proposals originate from these locations requesting for capital budgets for various purposes like expanding operations, replacement of assets, etcetera," explains Nishi Vasudeva, executive director-IS, HPCL.

These proposals, along with supporting documents were being couriered to regional, zonal or head offices for review and approval. During reviews, clarifications are often sought and the paper flows back to the originator, and a new loop is formed.