Indian Oil Corporation said that it has plans to invest Rs 8.55 billion in the state in the period between April 2020 and March 2021 and it hopes that the spending activity will be accelerated in the first three months of the year.
It said that work has resumed at several of its facilities since the easing of lockdown restrictions. However, in Maharashtra, the demand is back at only 60 per cent compared to 80 per cent across the country due to several local lockdowns.
Much of the new investment, the upstream oil company said will go into setting up new fuel stations and creating new capacities. "New LPG plant coming up at Nagpur will increase bottling capacity by 16 per cent (60 TMT/year against existing 360 TMT/year)," the company said.
However, it has been facing difficulties in many places to hit the ground running and has been able to spend only about 10 per cent of its planned expenditure.
"Indian Oil has targeted a capital expenditure of Rs 261.43 billion during FY 2021 and in the first quarter achieved an approximate expenditure of Rs 26.74 billion, overcoming various issues faced on-ground due to the Coronavirus pandemic," the public sector oil company said.
All the fuel that rolls out of the IOC plants is Bharat Stage-VI emission grade fuel.
