The Hindu : IOC plans to invest Rs. 1,100 crores

Online edition of India's National Newspaper
Tuesday, Dec 02, 2003

Business

Business

IOC plans to invest Rs. 1,100 crores

By Our Staff Reporter

CHENNAI DEC. 1. The Indian Oil Corporation will invest about Rs.1,100 crores in Tamil Nadu over the next two years, N.G.Kannan, Director (Marketing), said today.

Ata press conference here, he said the corporation would spend Rs.381.21 crores on laying a product pipeline connecting Chennai and Madurai via Tiruchi, and another Rs.150 crores on setting up an LPG import facility at the Ennore Port. Other investments would be in setting up a larger network of petrol stations and retail outlets.

The investments were part of the IOC's transformation from a mere distribution to strategic marketing company, and timed for capturing a wide customer base before private players such as Shell, Reliance and Essar entered the field. The initial capacity of the product pipeline, including a branch pipeline from Asanur to Sankari, would be 1.8 million tonnes a year and could be expanded to 2.33 million tonnes. The pipeline would be used to transport naphtha and HSD.

To start with, only Chennai would have a pumping facility, but another facility at Asanur would be completed by January 2005.

Another major investment was in the Ennore import facility, which was decided on to meet the increasing demand for LPG in Tamil Nadu. The corporation was also planning an automated super terminal at Ennore to cater for Chennai and bordering States. Besides, a Rs. 45-crore hydrant pipeline for aviation would also be established at the Meenambakkam airport.

On a smaller scale, 53 petrol stations would be commissioned in Tamil Nadu and Pondicherry at Rs.27 crores by March. Between April and October this year, the corporation invested Rs.22 crores in commissioning 38 petrol stations. The petrol stations would have a high-profile positioning and would provide space for food and beverages, private banking (ATMs) and convenience stores.

Nine flagship highway retail outlets were also being planned in Tamil Nadu at a cost of Rs.15 crores. Overall, the IOC planned to set up over 350 retail outlets in Tamil Nadu and Pondicherry by March 2005, and to invest another Rs.12 crores in automating over 100 retail outlets here.

Besides, auto LPG dispensing stations would be installed in seven retail outlets by March.

The corporation entered into a tie-up with the BSNL to introduce real-time tracking of fuel to check adulteration, he said.

Earlier, M.S.Srinivasan, Additional Secretary, Ministry of Petroleum and Natural Gas, launched the Indane Star Distributorship programme here, which would offer advanced service options such as safety checks, automated booking and 24-hour delivery of Indane cooking gas cylinders. Twenty star distributors were identified. A four-digit booking and complaint number 1260 was announced.

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