IOC unveils Rs 60,000 cr investment plans

NEW DELHI, SEPT 6: Though yesterday's fire, the fourth in recent months, in its newly commissioned Panipat refinery came as setback to In...

NEW DELHI, SEPT 6: Though yesterday’s fire, the fourth in recent months, in its newly commissioned Panipat refinery came as setback to Indian Oil Corporation (IOC), chairman M A Pathan today affirmed that his company would be able to meet its ambitious investment plans, of over Rs 60,000 crore over the next seven or eight years.

This includes a doubling of refining capacity to over 88 million tonnes by the end of the next plan period, and other ambitious forays into petrochemicals and oil exploration. IOC has been in the news recently for trying to bid for management control of the petrochemicals giant IPCL — its bid has been turned down by the government but IOC has appealed against this — and it has joined hands with ONGC to bid for five fields in the latest exploration rounds just opened by the government under what is called the New Exploration and Licensing Policy (NELP).

Pathan said that the Panipat refinery, which has yet to stabilise, will be expanded to 12 million tonnes at a cost of Rs 3,365 crore, and work on the Rs 8,270 crore Paradip refinery was on stream and would be completed by 2002 — by this time, the Gujarat refinery capacity would also be augmented to 12.5 millon tonnes.

Story continues below this ad

Among the major projects scheduled for completion this year include the Rs 1,041 crore secondary processing facilities at Mathura Refinery, Pathan said.

Pathan said that IOC has emerged as the 16th largest oil company in the world, earning the highest ever net profit of Rs 2,214 crore in 1998-99, 30 per cent more than the previous year. The company registered a sales turnover of Rs 69,430 crore in 1998-99 compared to Rs 59,170 crore the preceding year.

The company has announced bonus sahres at the rate of 1:1 and dividend of 130 per cent compared with 50 per cent last year. Both these together would entail an outgo of about Rs 896 crore from IOC which posted a net profit of Rs 2,214 crore during 1998-99.

"IOC has already identified projects worth Rs 60,000 crore for implementation in the ninth and tenth plan (2002-07) including projects of over Rs 13,000 crore on hand," Pathan said addressing newspersons here today.

Story continues below this ad

The company as part of its diversification strategy is also making forays into petrochemicals, power and exploration and production sector, he said.

IOC had alongwith Oil and Natural Gas Corporation (ONGC) bid for five blocks including one deep waters under the new exploration licensing policy (NELP) while one with Malaysian company Petronas, Pathan said.

The corporation is targetting turnover of about Rs 77,000 crore during the next financial year with an estimated net profit of Rs 2,500 crore, Pathan said.

Asked about IOC’s outstandings from the oil pool account, he said that dues till date of the corporation stand at Rs 1,857 crore which includes Rs 1,000 crore due from the Oil Coordination Committee (OCC).

Regarding the recent criminal activities carried out by the gang, ADG Krishnan said that one Aditya Kumar was shot dead by Ranjan Pathak and his associates on July 18 in the Bajpatti police station area.

What is Sigma & Company, whose 4 gang members were gunned down by police in Delhi

India8 min ago

Four gangsters from Bihar's Sitamarhi district were killed in an encounter while trying to spread unrest before the Assembly polls. They were responsible for contract killings and extortion cases, and evidence, including an audio clip, was seized. The police had been conducting raids based on intelligence inputs and had announced a reward for their arrest.

View all shorts

Live Blog

PHOTOS