Financial Daily from THE HINDU group of publications
Thursday, Apr 14, 2005
Financial Daily from THE HINDU group of publications Thursday, Apr 14, 2005 |
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Corporate
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Mergers & Acquisitions IOC to invest Rs 5,800 cr in new projects Our Bureau
Mr Sarthak Behuria, Chairman, Indian Oil Corporation Ltd, addressing a press conference in the Capital on Wednesday. — Kamal Narang
New Delhi , April 13 INDIA Oil Corporation Ltd (IOC), which is aiming to become a $60-billion company from the current turnover of $35 billion, proposes to invest over Rs 5,800 crore in new projects during the current fiscal. Addressing a press conference here on Wednesday, Mr Sarthak Behuria, Chairman IOC, said that the company would invest Rs 1,530.14 crore in refinery, Rs 2,022.99 crore in petro-chemical projects and Rs 953.78 crore in pipeline. It plans to set up 2,000 petrol pumps in 2005-06. IOC would set up 1,000 new petrol stations and an equal number of smaller pumps in 2005-06. Petro price hike Commenting on the petrol and diesel price hike Mr Behuria said ``Petrol and diesel prices need to be increased because of three reasons — the cost of raw material has gone up, the budget increased excise duty on products and levied additional road cess, and finally prices need to be increased because of supply of cleaner fuels.'' Due to surge in crude oil prices, per litre petrol prices need to be increased by Rs 1.70, Re 0.61 because of additional road cess, Rs 2.52 due to excise duty increase, and Re 0.29 for quality upgradation. For diesel, per litre hike should be Rs 2.95, Re 0.57 due to road cess, Rs 1.43 due to excise duty increase and Re 0.23 for quality upgradation of fuel, he explained. The company has sought a Rs 5.18 per litre hike in the price of diesel and Rs 4.59 per litre increase in petrol prices. ``We have made our demand to the Government and we hope it will be considered favourably,'' he said. He said the company lost Rs 300 crore on selling petrol and diesel below cost in the first fortnight of April. In addition, the oil major also lost Rs 350 crore during the same period on selling LPG and kerosene below the cost. IOC had lost Rs 4,175 crore on kerosene and Rs 3,157 crore on LPG in 2004-05. Imports On the import front IOC plans to import around 32 million tonnes of crude in the current financial year. The IOC Chairman said that term crude imports during the year ending March 2006 are estimated at 24.8 million tonnes. Imports from Saudi Arabia will be to the order of 4.5 million tonnes, Kuwait 6.5 million tonnes, Iraq 8.4 million tonnes, UAE 1.94 million tonnes, Nigeria 2 million tonnes, Malaysia 1 million tonnes and Iran half a million tonnes. LPG imports will be 2.158 million tonnes during the current year and almost half of the quantity is from Saudi Arabia. He also said crude throughout could rise 8 per cent to 39.5 million tonnes during the financial year.
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