New Delhi: State-owned Bharat Petroleum Corporation Ltd (BPCL) On June 28 declared that it will raise up to Rs 18,000 crore by issue of equity shares on a rights basis to bear the cost of its net zero carbon emission projects.

The Centre, which holds the majority of the company, is to be expected to subscribe to the rights issue by infusing equity in the company. As per the budget announcement, it will fund Rs 35,000 crore of capital support to state-run fuel retailers-BPCL, Indian Oil Corporation (IOC) along with Hindustan Petroleum Corporation Ltd (HPCL) in order to provide support to their energy transition and net zero initiatives.

To attract government capital, ICO and HPCL are much more likely to introduce similar schemes.

In a stock exchange filing, BPCL stated its board in a meeting on June 28, “approved the proposal for raising capital up to an amount not exceeding Rs 18,000 crore. This capital will be raised by way of the issue of equity shares on a rights issue basis to eligible equity shareholders of the corporation as on the record date.”

The detailed terms of the rights issue including but not limited to the issue price, right entitlement, record date, timing, and terms of payment will be intimated separately after the board’s approval in due course, the filing further stated.

IOC, which aims at launching its rights issue, on Saturday, doubled its authorised share capital to Rs 30,000 crore.