Indian Oil Corp to achieve Rs 26,143 crore capex in FY21 – business news

State-run Indian Oil Corporation (IOC), the country’s biggest fuel retailer, has ramped up works in 336 projects worth Rs 1.04 lakh crore immediately after the nationwide lockdown restrictions, which were imposed since March 25 to contain the spread of the coronavirus disease (Covid-19) outbreak, were eased and likely to achieve the Rs 26,143 crore capital expenditures (capex) target in the current financial year, 2020-21.

“Indian Oil [IOC] has targeted a capex of Rs 26,143 crore during the financial year 2020-21 and in the first quarter achieved an approximate expenditure of Rs 2,674 crore, overcoming various issues faced on-ground due to the Covid-19 pandemic,” the company said in a statement.

It said that the company resumed works at its various project sites across the country from April 20. “Gearing up to ramp up activities, Indian Oil is taking all necessary precautions to ensure that its entire workforce is aligned to the ‘new normal’ and detailed advisories issued from time to time, for the safety and health of the employees and workers during the Covid-19 pandemic, are being strictly followed,” it added.

Since the easing of the lockdown, IOC commenced works on 336 projects that have an investment of over Rs 1 crore in each project, at an anticipated project cost totalling to Rs 1.04 lakh crore, it said.

The amount spent on these ongoing projects is about Rs 1,764 crore till end-June.

Besides, over 50 projects have also resumed since July 1, the statement said.

“These mega projects would not only boost the economy, but would also ensure a smooth supply of petroleum products across the nation and also provide much-needed relief to the people looking to get back to work after the lockdown. The man-days of work, generated in these projects during the period April 20 to June 30 is about 13.3 lakh and the expenditure incurred on this account is about Rs 276 crore,” it said.

Major pipeline projects, where works have resumed include the Rs 3,338 crore Paradip-Hyderabad products pipeline, which is 1,212 kilometre (km)-long and passes through Odisha, Andhra Pradesh, and Telangana, it said.

The other pipeline project is the Rs 3,028-crore augmentation of Paradip-Haldia-Durgapur liquefied petroleum gas (LPG) pipeline and its extension to Patna and Muzaffarpur, which traverses 678 km through Odisha, Jharkhand, West Bengal, and Bihar.

Work has also started in the Rs 6,02-crore Ennore-Tiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin regassified-liquefied natural gas (LNG) pipeline, which spans 1,170 km through Tamil Nadu, Andhra Pradesh, Puducherry, and Karnataka.

Works have also commenced at major marketing infrastructure projects such as LPG import facilities at Kochi (Rs 714.25 crore), LPG import facilities at Paradip (Rs 690 crore), capacity augmentation of Kandla import terminal from 0.6 to 2.5 million metric tonne per annum (MMTPA) (Rs 730.2 crore), construction of a terminal at Motihari (Rs 522 crore) and a pipeline tap of point (TOP) terminal at Hyderabad (Rs 611 crore), the statement said.

Other projects are Barauni refinery expansion, including the petrochemical plant (Rs 14,810 crore), ethylene glycol project at Paradip Refinery (Rs 5,654 crore), fuel quality upgrade projects at Paradip (Rs 3,361 crore) and Barauni (Rs 1,774 crore).

“These projects are crucial from the perspective of addressing future energy demands as well as employment generation while kick-starting the economy with a focus on ‘Atmanirbhar Bharat’ (Self-reliant India),” it added.

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