IOC implementing Rs 60,000-cr projects

With a third of its investment going into the petrochemical sector, state-run Indian Oil Corporation (IOC) expects around 15 per cent of its revenues to come from this sector in three years. The company is implementing projects worth Rs 60,000 crore, including over Rs 20,000 crore in petrochemical and refinery capacity expansion.

“With investments of over Rs 20,000 crore in three world-scale plants and more projects on the anvil, petrochemicals will be a major driver for the company’s future growth,” IOC Chairman and Managing Director Sarthak Behuria said. He added that the company was continuously augmenting production capacities and upgrading technologies to meet the energy demands of the country.

“As a part of this, projects valued at over Rs 60,000 crore are currently under implementation, including a grassroots refinery at Paradip,” Behuria said at the company’s 50th annual general meeting in Mumbai.

The company also recommended the issue of one bonus share of Rs 10 for every one equity share of Rs 10 held. The paid-up equity capital of the company would stand revised to Rs 2,427.95 crore from the present level of Rs 1,213.98 crore. The bonus shares would be credited to the shareholders’ accounts in two months, Behuria said.

IOC has planned a capital outlay of Rs 15,000 crore for 2009-10. It has also signed an agreement with Nuclear Power Corporation of India (NPCIL) for setting up a joint venture company for building nuclear power plants in the country, Behuria said. The company could be investing around Rs 1,000 crore in the venture.

Meanwhile, the oil marketing company said it expected oil bonds worth Rs 6,200 crore from the government to make good part of the losses it suffered on selling petrol, diesel, LPG and kerosene at below market rates. The oil marketing company projected under-recoveries of Rs 24,000 crore in the current financial year on sale of these four products.

To source crude from RIL, Cairn
IOC would be sourcing around a million tonnes (mt) of crude oil from RIL’s Krishna-Godavari (K-G) basin next year. The crude would be used at two of its refineries run by its subsidiary, Chennai Petroleum Corporation (CPCL).

The company would also buy around 1.5 mt of crude from Cairn India next year for its refineries in western India. Cairn India began production of crude oil from its Barmer fields in Rajasthan last month.

“RIL would be producing around 2 mt of low sulphur crude from its K-G basin field. We would be sourcing around 1 mt of this crude for two refineries run by

CPCL. From Cairn, we would source around 1.5 mt,” Chairman Sarthak Behuria said.