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IOC to expand refining capacity

With the deadline for dismantling of the administered price mechanism on five petroleum products less than 13 months away, Indian Oil Corporation Ltd will expand its existing refining capacity by 34 per cent to 61 million tonnes by 2004.

"We have envisaged a low cost investment of about Rs 58 billion for capacity expansion at our nine refineries, including Bongaigoan Refineries and Petroleum Ltd (BRPL) and Chennai Petroleum Corporation Ltd, from the current 35.5 million metric tonnes per annum, at existing and also new facilities," Chairman and Managing Director, IOC, M A Pathan said in Bombay.

"As of now, IOC is a market leader with 55 per cent share in marketing with over 20,000 sales points. We want to bridge the gap between high existant demand and the low refining capacity of petroleum products within India, thus ensuring oil security in a decontrolled regime," he explained.

Post-APM, the demand for petrol, diesel, kerosene, LPG and aviation turbine fuel was expected to reach 368 million tonnes, up four times, Pathan said, adding that the refining capacity would rise by three times.

"There is enough need for IOC's expansion and enhancement of capacity integration across the country and also to offer value addition services like state-of-art retail outlets and easy accessibility of petro products," Pathan said.

Currently, IOC has seven refineries -- Koyali (12.50 metres), Mathura (7.50 metres), Panipat (6.00 metres), Barauni (3.30 metres), Haldia (4.60 metres), Guwahati (1.00 metres) and Digboi (0.65 metres).

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