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Indian Oil Corporation (IOC), the country’s largest fuel retailer, has plans to invest around Rs 1.8 lakh crore over the next five to seven years in asset creation, up-gradation of refineries and its petrochemical projects, Sanjiv Singh, Chairman and Managing Director said at the company’s 58th Annual General Meeting (AGM) held in Mumbai.
“With a capital expenditure target of about Rs 1.8 lakh crore in the next 5 to 7 years, IndianOil is scaling up its investments in areas that will ensure profitable growth both in terms of volumes and revenue. Investments of about Rs 30,000 crore per annum in asset creation will generate the critical mass for enhanced momentum in new and emerging business too,” Singh said.
The chairman said that the company is looking at expanding and upgrading Barauni, Gujarat, Panipat and Paradip refineries to achieve significant savings and energy efficiency. Also, the company is looking at installing large-size single crude unit to replace the several existing small units at the refineries for efficient operations.
The company announced that the commissioning of Jharsuguda-Khunti section of Paradip-Raipur-Ranchi product pipeline had led to the company achieving 13,000 Km of pipeline network across the country, propelling IOC’s throughput capacity to 93.7 Million Tonnes Per Annum (MMTPA) for liquid fuel and 9.5 Million Metric Standard Cubic Meter Per Day (MMSCMD) for natural gas.
Singh also announced that IOC will expand its pipeline network to over 20,000 Km by 2020-21, achieving a throughput capacity of over 118 MMTPA for liquid fuel and capacity of 50 MMSCMD for transporting natural gas.
With the petrochemical segment contributing to approximately a quarter of the company’s profit, IOC plans on investing around Rs 32,000 crore more in its petrochemical projects, of which Rs 3,150 crore will be invested in the Polypropylene unit being set up at its Paradip refinery.
Anticipating a robust demand for natural gas, the company announced that the focus is now on expanding Liquefied Natural Gas (LNG) import capacities on the east and west coast of the country. “IndianOil is acquiring equity in gas imports in the south, on its own at Ennore, and on the East and West coasts at Dharma and Mundra respectively as a JV partner,” Singh said.
He added that the retailer has considerable presence in the country’s City Gas Distribution (CGD) infrastructure and plans to commission CGD networks in Daman, Panipat, Udhamsingh Nagar and Dharwad geographical areas in the present financial year.
According to data available with Petroleum Planning and Analysis Cell (PPAC), the statistical arm of the oil ministry, IOC plans to invest Rs 20,162 crore in the present financial year of which the company has already invested Rs 5,479 crore up to July.
IOC’s share price at the Bombay Stock Exchange (BSE) today closed at Rs 451.85, up 3.97 per cent as compared to previous close.
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