IOC plans entry into merchant power
Mumbai   26-Apr-2011

State-owned IndianOil (IOC) plans to foray into merchant power business while consolidating his leadership position in fuel retailing and oil refining business, its new Chairman R S Butola said on Monday.

IOC has power plants at each of its 8 refineries in the country to meet the captive requirement, but it is now looking at generating electricity from pet coke - a by- product that comes from processing crude oil - for merchant sale.

'We are looking at entering into merchant power business,' Butola said, ' We have synergy as well as feedstock for that.'

The company has 1,100- 1,200 MW of captive power generation capacity, with most of the refineries having surplus power to trade outside. Digboi refinery in Assam has 5 MW of surplus power for which an agreement has been signed to give it to Assam grid.

Butola, said his focus will be on IOC's core business of refining and marketing while continuing to scout for E& P opportunities.