Indian Oil Corporation to Invest Rs 37,000 crore in Tamil Nadu

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Indian Oil Corporation to Invest Rs 37,000 crore in Tamil Nadu
Indian Oil Corporation to Invest Rs 37,000 crore in Tamil Nadu

Chennai Petroleum Corporation Ltd (CPCL), a subsidiary of the nation’s largest oil firm Indian Oil Corporation (IOC), will invest Rs 30,000 crore to amplify refinery capacity at Narimanam to 9 million tonnes per annum. IOC and group company CPCL will be investing about Rs 37,112 crore in Tamil Nadu.

R Sitharthan, executive director (Tamil Nadu and Puducherry), IOC said “The investments will be in pipeline expansion, construction of the captive jetty, additional facilities for petrol and diesel handling, POL (petroleum, oils and lubricants) terminals at an outlay of Rs 7,112 crore in the next three years. Besides, CPCL will be expanding its refinery capacity at Narimanam to 9 million tonne per annum at an outlay of about Rs 30,000 crore”

IOC will also be investing in the city gas distribution network in Coimbatore and Salem where it has won the distribution bids recently added Sitharthan. The pipelines are in the process of being laid down at various places to transport the gas from the Ennore LNG terminal to industries and to transport other petroleum products.

IOC’s joint venture for the 5 million tonne per annum liquified natural gas (LNG) terminal at Ennore has an investment of Rs 5,151 crore and is expected to be working by December 2018.

Earlier, chairman Sanjiv Singh said that “the company plans to invest Rs 1.75 lakh crore to nearly double refinery capacity, boost petrochemical production, expand gas business and lay new pipelines to become a vertically integrated company. As part of this, projects costing Rs 32,000 crore are in various stages of execution and plans are underway for implementing more projects costing about Rs 1.43 lakh crore.”

Currently, IOC is capitalising Rs 15,600 crore in development of petrochemical projects and another Rs 74,600 crore in levitating the capacity of its existing refineries. The venture also comprises Rs 16,628 crore in elevating refineries to make Euro-VI emission norm-compliant petrol and diesel by 2020.

An add-on Rs 36,500 crore worth of projects are in the pipeline, but are not yet approved by the company board. These include expansion of its latest refinery at Paradip in Odisha to 18 million tonne from current 15 million tonne as also the expansion of its Bongaigaon unit as per reports.

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