IOCL Resumes Work on Projects Worth Rs 1.04 lakh cr

The Indian Oil Corporation, an oil and gas company, has resumed work on projects worth Rs 1.04 lakh crore post easing of lockdown restrictions, which will help address future energy demand as well as kickstart the economy.

 

The company is on track to achieve its planned capital spending of Rs 26,143 crore in FY21, but future capex depends on long-term demand potential in the country.

 

Since the easing of the lockdown, IOC has commenced works on 336 projects at an estimated project cost totalling Rs 1.04 lakh crore.

 

The government is falling back on public sector companies to revive the economy, hit hard by  COVID-19, and pushing them to frontload their capital spending which will help generate demand in industry as well as create jobs.

 

The amount spent on the 336 ongoing projects is around Rs 1,764 crore till the end of June 2020.  Additionally, more than 50 projects have also resumed since 1 July 2020.

 

The company is targeting a capex of Rs 26,143 crore during FY21, and in Q1/FY21 achieved expenditure of Rs 2,674 crore, overcoming various issues faced on-ground due to the Coronavirus pandemic.

 

The oil refining and marketing company has resumed works at various project sites across the country after easing of the lockdown from 29 April 2020 and more projects got added as restrictions were eased month after month.

 

About 13.3 lakh man-days of work were generated in these projects during 20 April 2020 to 30 June 2020, and Rs 276 crore was spent.

 

Works on major pipeline projects have resumed including Rs 3,338 crore Paradip-Hyderabad products pipeline, which traverses 1,212 km through Odisha, Andhra Pradesh and Telangana.

 

Work has also recommenced on the Rs 3,028 crore augmentation of Paradip-Haldia-Durgapur LPG pipeline and its extension to Patna and Muzaffarpur, which traverses 678 km through Odisha, Jharkhand, West Bengal, and Bihar.

 

This also includes Rs 6,025 crore Ennore-Tiruvallur-Bangalore-Pondicherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline which travels 1,170 km through Tamil Nadu, Andhra Pradesh, Puducherry and Karnataka.

 

Works have also resumed at major marketing infrastructure projects such as LPG import facilities at Kochi worth Rs 714.25 crore, LPG import facilities at Paradip worth Rs 690 crore, capacity augmentation of Kandla import terminal from 0.6 million tpa to 2.5 million tpa worth Rs 730.2 crore, construction of oil terminal at Motihari worth Rs 522 crore and pipeline tap of point (TOP) terminal at Hyderabad worth Rs 611 crore.

 

Apart from this, Barauni Refinery expansion, including the petrochemical plant worth Rs 14,810 crore and ethylene glycol project at Paradip refinery worth Rs 5,654 crore are some of the refinery projects underway.