Business Daily from THE HINDU group of publications
Thursday, May 15, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, May 15, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Outlook Industry & Economy - Petroleum Cash crunch tells on IOC investment plans
According to sources, while the company may go ahead with the projects already under way, projects in the pipeline may be delayed 
Pratim Ranjan Bose Kolkata. May 14 The cash crunch may have started taking its toll on IndianOil’s investment plans. As the first and definite casualty of this episode, marketing division of IOC has decided to put the larger part of its Rs 1,600-crore proposed expenditure for the year for expanding the retail network and purchase of LPG cylinders for new connections, on hold. IOC previously proposed to set up 800 new outlets and buy LPG cylinders worth approximately Rs 350 crore during this fiscal. “Due to prevailing cash crunch we have decided not to put expansion plan on hold. Plans to buy new cylinders are also postponed for the time being,” a source told Business Line. May seek reliefWhile the company is eagerly looking forward to the Union Government to come out with some solution while finalising the subsidy sharing formula for the January-March 2008 quarter, sources said that IndianOil was actively considering seeking an exemption from the government on the auto-fuel quality upgradation programme, which is currently under implementation. The national auto-fuel policy adopted by the Union Government previously projected a Rs 55,000-crore investment towards quality upgradation of petrol and diesel so as to supply requisite auto-fuel to meet the Euro-IV emission norms by 2010. As part of the project, oil marketing companies are currently supplying Euro-III fuel in metro cities. IndianOil is currently implementing major quality upgradation projects at approximately Rs 10,000 crore at Koyali (Gujarat), Panipat (UP and Haldia (West Bengal) refineries. Plans were afoot to take up future projects in Barauni and Mathura refineries. According to sources, while the company may go ahead with the projects already under implementation, projects in the pipeline may be delayed to tide over the crisis. Paradip RefineryThough they did not link it to the cash crunch issue, sources said that the proposed investment in the 15-million-tonne refinery-cum-petrochemical complex at Paradip in Orissa was being reviewed and a decision was pending on this. It may be mentioned that IndianOil has nearly completed the project planning and was slated to seek the final approval of the board of directors in April-May this year for implementing the project. IOC loses Rs 320 cr a day on petro products sale Volatility in crude may hit IOC refining margins Fuel quality: IOC to invest Rs 9,000 cr More Stories on : Outlook | Petroleum
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