Indian Oil Corporation to invest Rs 175000 crore for scaling output to 100 Million Tonnes

The oil refiner company Indian Oil Corporation is investing Rs 175000 crore to scale up its output to around 100 million tonnes from 65 million tonnes (at present) for the next seven years

The total investment is Rs 175000 crore for the next 5-7 years, as the company will do expansion and upgradation of their existing refineries. And also invest on supporting infrastructure and pipeline.

The Company had planned a capital expenditure of Rs 56,200 crore in the 12th Five-Year Plan and by the end of the current financial year, Indian Oil will achieve that target in advance also planning to exceed the target.

Besides this investment, the company also plans to build a refinery on the western coast of India and acquire assets overseas.

The whole plan which is a whopping Rs 1,75,000-crore investment will be on all business, and includes primarily an investment if Rs 50,000 crore on refineries, Rs 15,000 crore on building pipelines, Rs 35,000 crore for marketing, Rs 35,000 crore into exploration and production, Rs 30,000 crore into petrochemical projects, and Rs 7,000 crore into gas.

The Company's Paradip refinery is near to being fully operational and would start production from this November. The company has an outstanding payment of USD 500 million for Iran which is pending but Indian Oil is hoping that the payment will made in 2-3 installments soon.

Today Indian Oil Corporation is trading at Rs 399, up by 0.16 per cent.