India’s Bharat Petroleum Corporation Ltd. (BPCL) has obtained government clearance to increase its investment in Bharat Oman Refineries Ltd. (BORL) up to a maximum of Rs30 billion ($450 million), a report said.

This will further increase the capacity of BORL's Bina refinery in the Indian state of Madhya Pradesh, according to the Tomes of Oman report.

"The infusion of funds by the BPCL will enable BORL to overcome implications arising out of erosion of its net worth," the report quoted a cabinet statement.

BORL "proposes to undertake a debottlenecking project at the refinery to further increase the refining capacity from six million tonnes per annum to 7.8 MTPA. The estimated project cost is Rs30 billion," the statement said.

"The highlights of the proposal for debottlenecking project include certain modifications to produce products in accordance to the new auto fuel policy," it added.