IOC beats lockdown blues, resumes works on projects worth Rs 1.04 trn

Topics IOC | IndianOil | Coronavirus

The mega projects would boost the economy and ensure a smooth supply of petroleum products across the nation
After initial hiccups owing to the lockdown, state-run Indian Oil Corporation (IOC) has resumed work on many of its projects at an anticipated cost of around Rs 1 trillion.

“Since easing of the lockdown on April 20, IndianOil has commenced works on 336 projects that have an investment of more than Rs 1 crore in each project, at an anticipated project cost totalling Rs 1.04 trillion,” the company said in a statement on Wednesday. 

The amount spent on these ongoing projects was about Rs 1,764 crore till the end of June 2020. Additionally, more than 50 projects have also resumed since July first week. The company has lined up a capital expenditure of Rs 26,143 crore during financial year 2020-21. Overcoming various issues faced on ground due to the coronavirus (Covid-19) pandemic in the first quarter, IOC achieved capital expenditure of Rs 2,674 crore. These mega projects would boost the economy, ensure smooth supply of petroleum products across the nation and also provide the much-needed relief to people looking to get back to work after the lockdown, the statement said. 

The man-days of work generated in these projects during the April 20 to June 30 period was about 1.33 million and the expenditure incurred on this account was about Rs 276 crore. “IndianOil’s capex plans depend on long-term demand potential in the country. These projects are crucial from the perspective of addressing the future energy demands as well as employment generation while kickstarting the economy with a focus on ‘Atmanirbhar Bharat’,” it added.

Major pipeline projects where works have resumed include the Rs 3,338 crore Paradip-Hyderabad products pipeline, which traverses 1,212 kms through Odisha, Andhra Pradesh and Telangana; the Rs 3,028 crore augmentation of Paradip-Haldia-Durgapur liquefied petroleum gas pipeline and its extension to Patna and Muzaffarpur, which traverses 678 kms through Odisha, Jharkhand, West Bengal and Bihar. Work on the Rs 6,025 crore Ennore-Tiruvallur-Bangalore-Pondicherry-Nagapattinam-Madurai-Tuticorin R-LNG pipeline, which covers 1,170 kms through Tamil Nadu, Andhra Pradesh, Puducherry and Karnataka, also started during this period.

Works have also commenced at marketing infrastructure projects like 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 (Rs 730.2 crore), construction of a petroleum, oils and lubricants (POL) terminal at Motihari (Rs 522 crore) and pipeline tap of point terminal at Hyderabad (Rs 611 crore).

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