IOC PLANS RS 1.75 LAKH CR EX­PAN­SION

Resource Digest - - EXPANSION -

Oil ma­jor In­dian Oil Cor­po­ra­tion is plan­ning to in­vest about Rs. 1.75 lakh crore by 2022 for ex­pand­ing its var­i­ous busi­nesses. The in­vest­ments will help to ex­pand ca­pac­ity from 65 mil­lion tonnes to 100 mil­lion tonnes.

B Ashok, Chair­man, told me­dia per­sons that out of the to­tal in­vest­ment of Rs. 1.75 lakh crore, the brown­field ex­pan­sions would be about Rs. 50,000 crore and it will be pri­mar­ily car­ried out at all the com­pany’s re­finer­ies.

“We will con­tinue to keep in­vest­ing for the fu­ture and go­ing by the Gov­ern­ment of In­dia's em­pha­sis on man­u­fac­tur­ing ac­tiv­ity. There is go­ing to be a higher em­pha­sis on en­ergy. Our in­dus­try re­quires that the com­pany creates ca­pac­ity ahead of the de­mand. Our stud­ies show that we need to in­vest more for ca­pac­ity cre­ation,” Ashok said.

De­lin­eat­ing the ex­pan­sion pro­gramme, the Chair­man said that along with the re­fin­ery ex­pan­sions, the com­pany would be in­vest­ing Rs. 15,000 crore in pipe­line projects, for prod­uct mar­ket­ing Rs. 35,000 crore would be re­quired, the petro­chem­i­cal and oil ex­plo­ration busi­ness will re­quire an­other Rs. 65,000 crore, while the gas busi­ness will re­quire an in­fu­sion of Rs. 7,000 crore. He said that along with re­fin­ery ex­pan­sions the qual­ity of fuel would also be up­graded, and by 2022, the com­pany wants to pro­duce fu­els, which are com­pli­ant with BS-6 norms.

Di­rec­tor of Re­finer­ies, San­jiv Singh said that the Paradip re­fin­ery would be op­er­a­tional by Novem­ber 1 and it would run at 60 per cent of its ca­pac­ity in the first year of op­er­a­tion.

In the sec­ond year, the re­fin­ing ca­pac­ity would be ramped up 90 per cent and grad­u­ally in­creased to 100 per cent of the ca­pac­ity.

“Given the com­plex­i­ties of the re­fin­ery all the units would not be fully op­er­a­tional si­mul­ta­ne­ously, it will take some time to sta­bilise the oper­a­tions.

The re­fin­ery has the ca­pa­bil­ity to process very heavy crude oils. The ap­proved project cost is Rs. 34,500 crore and about Rs. 30,000 crore has al­ready been spent on the project, he said.

B. ASHOK, CHAIR­MAN, IOC

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