Business Daily from THE HINDU group of publications
Thursday, Jun 05, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Jun 05, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Outlook Industry & Economy - Petroleum IOC may draw back curbs on expenditure Pratim Ranjan Bose Kolkata, June 4 Following the compensation package announced, IndianOil may withdraw a majority of restrictions on marketing expenditure. The company recently put on hold the larger part of its Rs 1,600-crore planned expenditure in 2008-09, towards upgradation of retail outlets, setting up new outlets, procurement of LPG cylinders for new connections and others, due to cash crunch. Plans are also afoot to seek final board approval for Paradip refinery complex project latest by July. However, in view of 70-80 per cent rise in project costs, the company has settled for setting up the 15-million tonne grassroot refinery at an estimated cost of Rs 30,000 crore in the first phase. According to the previous estimate IndianOil planned to set up an integrated refining and petrochemical complex at a total investment of Rs 25,000 crore. “We will approach the board with detailed funding options for the refinery project in June-July,” a company official told Business Line. “Due to phenomenal increase in project costs we have planned to set up the refining and petrochemical complex in phases. In the first phase we will be setting up the refinery,” he added. According to sources, IOC has completed the detailed technical project planning and will start the tendering process once the board approves. “Some restrictions might continue. However, all expenditures necessary to ensure availability of LPG and auto-fuel in the country should continue,” he said. The company was slated to procure LPG cylinders worth about Rs 350 crore during 2008-09 for giving new connections. More Stories on : Outlook | Petroleum
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