IOC resumes work on ₹1.04 lakh cr worth of projects

New Delhi, Indian Oil Corporation (IOC), the nation’s biggest oil firm, on Wednesday said with easing of lockdown restrictions, it has resumed work on projects worth ₹1.04 lakh crore which will help address future energy demand as well as kickstart the economy.

IOC said it is on track to achieve its planned capital spending of ₹26,143 crore in the fiscal to March 2021, 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 anticipated project cost totalling to ₹1.04 lakh crore,” the company said in a statement.

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

“The amount spent on these (336) ongoing projects is about 1,764 crore till the end of June 2020. Additionally, more than 50 projects have also resumed since July 1, 2020,” IOC said.

IOC said it is targeting a capex of ₹26,143 crore during financial year 2020-21, and in the first quarter achieved expenditure of ₹2,674 crore, overcoming various issues faced on-ground due to the coronavirus pandemic.

These projects are crucial from the perspective of addressing future energy demands as well as employment generation while kickstarting the economy with a focus on ‘Atmanirbhar Bharat’, it said. The FY21 capex is “on track,” it said. “IOC’s future capex plans depend on long-term demand potential in the country.”

The nation’s largest oil refining and marketing company said it resumed works at various project sites across the country after the easing of lockdown from April 20 and more projects got added as restrictions were eased month after month.

“These mega projects would not only boost the economy, ensure smooth supply of petroleum products across the nation and also provide much-needed relief to the people looking to get back to work after the lockdown,” it said, adding that 13.3 lakh man-days of work were generated in these projects during April 20 to June 30, and ₹276 crore was spent on this account.

Major pipeline projects where works have resumed include the ₹3,338 crore Paradip-Hyderabad products pipeline, which traverses 1,212-km through Odisha, Andhra Pradesh and Telangana.

Work also resumed on the ₹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, and the ₹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 commenced at major marketing infrastructure projects like LPG import facilities at Kochi ( ₹714.25 crore), LPG import facilities at Paradip ( ₹690 crore), capacity augmentation of Kandla import terminal from 0.6 million tonnes per annum to 2.5 mmtpa ( ₹730.2 crore), construction of oil terminal at Motihari ( ₹522 crore) and pipeline tap of point (TOP) terminal at Hyderabad ( ₹611 crore).

Barauni Refinery expansion, including the petrochemical plant ( ₹14,810 crore), and ethylene glycol project at Paradip refinery ( ₹5,654 crore) are some of the refinery projects underway.

“Gearing up to ramp up activities, IOC is taking all necessary precautions to ensure that its entire workforce is aligned to the ‘new normal’ and detailed advisories issued from time to time, for the safety and health of the employees and workers during these COVID times, are being strictly followed,” IOC said.