IOC to invest Rs 47,000 crore this year

State-run Indian Oil Corporation (IOC) will invest Rs 47,000 crore in 2010-11 in creating more refining capacity, pipeline network, marketing infrastructure and raising quality, said B M Bansal, chairman, said at its 51st annual general meeting here today.

IOC is planning to take its total yearly refining capacity from 61.7 million tonnes (mt) to 80.7 mt in the next two years, Bansal added.

To help meet growing demand for electricity from alternative sources of energy, it will complete a 5-Mw solar power project in Barmer, Rajasthan, by May 2011. “As a nation, our consumption is likely to go up even further, powered by the strength of our domestic demand and the task is to explore alternative forms of energy,” Bansal said.

IOC also plans to set up 100 Mw of wind energy capacity in the next few years, he added.

Bansal said IOC was eying purchase of shale gas assets abroad in a possible consortium with Oil India and GAIL India.

“The company has decided to invest $1 billion (Rs 4,700 crore) in exploration and production opportunities for assets abroad. But that is as and when the opportunity comes,” he said.

JV with NPCIL
IOC will invest Rs 961 crore to set up a 1,400 Mw nuclear power plant at Kota, Rajasthan. The Rs 12,000-crore project will be set up jointly with Nuclear Power Corporation of India. The company has 26 per cent stake and “has options to increase the equity stake to 49 per cent in future”. Work has begun and the joint venture will be formed within a month, said Bansal.