Companies

IndianOil to invest over ₹20,000 cr in city gas biz

Our Bureau New Delhi | Updated on August 13, 2018 Published on August 13, 2018

Sanjiv Singh, Chairman, IOC Ltd   -  Bijoy Ghosh

Indian Oil Corporation Ltd is going to invest over ₹20,000 crore in the city gas distribution business over the coming five-eight years.

Addressing a press conference after the company’s first-quarter results, IndianOil Chairman Sanjiv Singh said, “We are going to invest at least ₹20,000 crore for the city gas distribution business in the projects we have won during the ninth round of bids.”

The Petroleum & Natural Gas Regulatory Board had called for bids to develop city gas distribution infrastructure in 86 geographical areas. IndianOil has bagged rights to develop seven areas on its own and nine in joint venture with Adani Gas.

Singh said that natural gas is the cooking fuel of the future and liquefied petroleum gas (LPG) or cooking gas can be used as a feedstock for refineries when its demand tapers.

Iran sanctions

Commenting on the government’s stand crude imports from Iran following the US sanctions on Islamic nation, Singh said, “There are no updates that I can share with you. The window is still open till November 4. Now, we are moving towards a time that if we are not allowed to pay beyond that then probably we are reducing our credit period, whatever we can beyond 60 days. Let’s see. Today we are fine with that.”

Crude oil importers and refiners such as IndianOil are affected by the US sanctions levied on Iran. “If I am foregoing my 60 days credit benefit, it comes at a cost. It affects our profitability,” he added.

Published on August 13, 2018
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