IOC defers expansion plans

Posted By: Religare
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{image-18-indianoil-logo}The major state owned oil refiner, Indian Oil Corp (IOC) has recently stated that due to heavy losses suffered by the company on trading of subsidized fuel, it has delayed its plan for domestic expansion.

P.K. Goyal, head of finance, said "We are ready with detailed feasibility reports and all. We will see what is the best time to launch them, may be once the situation on subsidised fuel becomes clear."

He also added that, these projects may defer for a period of year or two owing to the vagueness on the subsidies and pricing of fuels.

Besides, Indian government restricts the price level of diesel and kitchen fuels and the deficit is covered by state spending, upstream companies and the refiners. Moving on, IOC has plans to expand capacity of its Gujarat refinery that has produces 274,000 barrels per day (bpd), apart from the setting up a petrochemical facility of 300,000 bpd at Paradip.

Read more about: iocl, oil and gas, crude
Story first published: Wednesday, May 18, 2011, 12:31 [IST]
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