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IOC to invest Rs. 1,500 crore

NEW DELHI: After having unveiled its plans to enter the city gas distribution projects in joint venture and also foray into non-core retail sector across the country, Indian Oil Corporation (IOC) has drawn up elaborate plans to pump in about Rs. 1,480 crore for expansion of its present network of pipelines carrying crude oil and petroleum products.

Apart from this, it is going in for major foray into the bio-fuel sector with plans to acquire 30,000 hectares in Chhattisgarh and Madhya Pradesh for jatropha culti- vation.

Official sources said that IOC planned to increase its present pipeline capacity from 61.718 million tonnes to 75.480 million tonnes by March 31 next year. The company planned to invest Rs. 1,178 crore in the 11 million tonne Paradip-Haldia crude oil pipeline and Rs. 224.69 crore in the two million tonne Koyali-Ratlam pipeline for transporting petroleum products.

In addition to this, it will invest another Rs. 48.58 crore in aviation turbine fuel (ATF) pipeline from Chennai refinery to Air Force Station in Chennai city and Rs. 28.61 crore in augmenting the Bongaigaon-Siliguri section of the Guwahati-Siliguri pipeline. Stating that things were moving at a smooth pace, sources clarified that IOC had not put on hold its proposed liquefied natural gas (LNG) import terminal at Ennore in Tamil Nadu. It was in the process of pursuing with various prospective LNG suppliers for long-term supply of LNG, the sources added.

As for its bio-fuel plans, sources said that the company was in the process of identifying suitable land clusters for developing jatropha plantation in Madhya Pradesh and Chhattisgarh.

Sources also said that IOC was in discussion with Reliance Industries for procuring gas for internal consumption in its refineries. Reliance is to begin production from its Eastern offshore Krishna-Godavari basin field from July 2008. The leading oil company has formed joint ventures for city gas distribution projects involving sale of piped natural gas (PNG) and compressed natural gas (CNG) to households, commercial establishments and the transport sector.

However, the requirement of gas has not been firmed up as yet and the company is still waiting for a final word on the natural gas pricing issue before going ahead with its plans to tie-up for supply of gas.

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