State-owned Bharat Petroleum Corporation Ltd (BPCL) on Wednesday said it will raise up to Rs 18,000 crore through an issue of equity shares on a rights basis to fund its net zero carbon emission projects.

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The government, which is the majority owner of the company, is likely to subscribe to the rights issue and infuse equity in the company. This as per the Budget announcement will provide Rs 35,000 crore of capital support to state-run fuel retailers -- BPCL, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation Ltd (HPCL) -- to support their energy transition and net zero initiatives.

IOC and HPCL are likely to come up with similar schemes to get government capital.

In a stock exchange filing, BPCL said its board at a meeting held on Wednesday "approved the proposal for raising capital up to an amount not exceeding Rs 18,000 crore. This capital will be raised by way of issue of equity shares on 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, it added.

IOC, which is also planning to launch a rights issue, on Saturday approved doubling its authorised share capital to Rs 30,000 crore.

HPCL, which is majority owned by state-owned Oil and Natural Gas Corporation (ONGC), is likely to make a preferential share allotment to the government to get the capital infusion.

The division of Rs 35,000 crore between the three fuel retailers has not yet been announced by the government.

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