Country's largest oil refiner Indian Oil Corporation to invest Rs 1.75 trillion over 7 years

Sep 15, 2015 12:00 AM

State owned oil refiner and marketing company Indian Oil Corporation will invest Rs 1,75,000 crore over the next seven years to scale up its output to around 100 million tonne from 65 million ton now, Chairman and Managing Director B Ashok said.

"We had planned a capital expenditure of Rs 56,200 crore in the 12 the Five Year Plan and by the end of the current financial year we would achieve that target a year in advance. So we will definitely exceed the target, " Ashok said.

"In the next 5-7 years, all our existing refineries would need expansion and up gradation. We will also invest on supporting infrastructure and pipeline. Our total investment would be Rs 1,75,000 crore," Ashok said.

Besides this investment, the company also plans to build a refinery on the western cost of India and acquire assets abroad. IOC head declined to share details of the additional investment on these.

The Rs 1,75,000 crore capex would be on all business, and includes primarily an investment if Rs 50,000 crore on refineries, Rs 15,000 crore on building pipelines, Rs 35,000 crore for marketing, Rs 35,000 crore into exploration and production, Rs 30,000 crore into petrochemical projects, and Rs 7,000 crore into gas.

"We feel it is strategic that we build a refinery on the western cost. We are exploring some locations and hope to finalise soon," Ashok said.

The company said its Paradip refinery is close to being fully operational and would start production from November.

On the company's outstanding payments for Iran, IOC said that it has $ 500 million dollars in pending and hopes that the payment would be done in 2-3 installments after the government finalises modalities.

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