IndianOil targets 15% revenue from petrochemical in 3 yrs
New Delhi   15-Sep-2009
IndianOil is currently implementing projects worth Rs 60,000-crore, which includes capacity expansion of refineries and building of petrochemical plants. The nation's largest PSU refiner, with investments of over Rs 20,000-crore in petrochemicals, also expects the sector to contribute 15 % revenues in the next three years. We are continuously augmenting production capacities and upgrading technologies to meet the energy demands of the nation. As part of this, projects valued at over Rs 60,000-crore are currently under implementation, including a grassroots refinery at Paradip, Chairman Mr. Sarthak Behuria told shareholders at the company's 50th AGM. "Petrochemicals will be a major driver of IOC's future growth. With the stabilization of production facilities and addition of new product lines and customers during the year, we expect 15% of our revenues to come from this vertical within the next three years/ 'he said. IndianOil has a capital expenditure plan of Rs 12,000-crore for FY 10, which includes setting up of more retail outlets and upgrading its refineries to produce Euro III and Euro IV auto fuels that emit less sulphur. It is also building pipelines to transport naphtha and ATF {jet fuel), BN Bankapur, director refineries, said All projects that are under implementation could be completed hi the current fiscal, and these include naphtha cracker project at Panipat and a residue upgrade project at Mundra in Gujarat," Bankapur said. "There is also a hydro cracker project at Haldia and the Panipat refinery expansion to 15 mt per annum (mint-pa), Haldia is also being expanded from 6 mmtpa to 7.5 mmtpa," he added. IndianOil, which currently has a refining capacity of 60.2 mt, is expected to raise this by another 4.5 mt in FY10. Besides, it is scheduled to complete the petrol (Motor Spirit) quality improvement project at Panipat and Mathura before end-March 2010. Apart from capex, the refiner will spend another Rs 2,000 crore for the maintenance of existing operations. Mr. Behuria said IndianOil has also signed a Moll with Nuclear Power Corporation (NPCIL) to set up about 1,500 mw power plants. "NPCIL has already identified 2-3 sites for the plants. It is along gestation project of 7-10 years and we expect assured returns of 16% from this joint venture, he said.