IOC to invest Rs 56,000 crore in 12th five year plan

Quarter of the funds to be earmarked for diversification, integration, rest for core business

India's largest state-run oil refining and marketing company, Indian Oil Corporation plans to invest Rs 56,000 crore during the current five-year plan, said RS Butola, chairman and managing director.

While over a quarter of the funds will be earmarked for diversification and integration, the rest would be used on its core business. 

"During the 12th Plan (2012-2017), investments to the tune of 56,000 crore are envisaged by your corporation," Butola told shareholders at the company's annual general meeting. "Out of this, 26% will be on integration and diversification and 74% on core business."

Butola, raising concern over untimely payout of compensation by the government towards sale of fuels at subsidised rates, said "High reliance on borrowings leads to high costs in the form of rising financing costs. The corporation has been pursuing with the government in this regard and it is expected that in the interim the government will continue to provide 100 per cent compensation."

IOC has not received any subsidy from the government for losses incurred on sale of fuels since the beginning of this fiscal.