Ioc Seen Raising Rs 895 Crore In Debt

Indian Oil Corporation (IOC) is expected to raise Rs 895 crore from the market through bonds or debentures during 1997-98. This is indicated in its plan for raising resources during the next financial year. The plan has been approved by the government.

IOC's total investment plan for the next year is estimated at Rs 2,302 crore, as against Rs 1,970 crore in 1996-97. In the current year, the corporation did not raise any resources through floation of bonds or debentures, instead its entire investment plan was sought to be met through external commercial borrowings and suppliers' credit. In 1997-98, IOC hopes to generate internal resources of Rs 1,406 crore, which coupled with Rs 895.30 crore to be raised through bonds or debentures will meet its investment needs for the next year. Expectation of internal resources generation during the next year is seen by analysts as an indication that an increase in petroleum products prices is set to take place in the early part of 1997-98. Even Bharat Petroleum Corporation Limited (BPCL), another blue chip oil company in the public sector, is expected to raise Rs 640 crore through bonds or debentures during 1997-98.

 

The corporation plans have been cleared by the government. BPCL's investment plans for the next year are quite modest, compared to IOC's. During 1997-98, BPCL is planning to invest about Rs 890 crore, as against Rs 511.44 crore it is to invest during the current financial year.

Bharat Petroleum has now provided for continuing its ongoing projects like the Bombay-Manmad product pipeline and for taking up new projects like Drod-quality improvement, setting up a market terminal and the six million tonne refinery along with Oman Oil Corporation (OCC) in central India. Oil India Limited too is set to float bonds during 1997-98 to raise a small amount of Rs 50 crore. It has earmarked only Rs 592 crore for investment during the next year, as against Rs 552 crore in the current financial year.

In sharp contrast, the Oil and Natural Gas Corporation (ONGC) has chalked up an investment plan of Rs 4,723 crore in 1997-98, of which Rs 4,193 crore will come from the corporation's internal resources. ECBs or suppliers' credit will meet the bulk of the remaining investment need. In 1996-97, ONGC had also relied on external commercial borrowing to the extent of Rs 1,781 crore to meet its Rs 4,451 crore investment plan. Its internal resources generation was estimated at Rs 2,669 crore.