Indian Oil to invest Rs 1.75 trillion over 7 years

Country's largest oil refiner Indian Oil Corporation (IOC) said on Tuesday it will invest Rs 1.75 trillion over the next seven years to expand output by 54 per cent to around 100 million tonnes per annum.

"We have a capex plan of Rs 1.75 trillion over the next seven years. And out of this, Rs 50,000 crore will be for brownfield expansion at existing facilities," chairman B Ashok said after the company 's 56th annual general meeting in Mumbai.

He said the investment will increase its total output to close to 100 million tonnes per annum from the present 65 million tonnes.

Giving details of the capex programme, he said the state-run company will invest Rs 35,000 crore into marketing, Rs 15,000 crore for pipelines, Rs 35,000 crore into exploration and production, Rs 30,000 crore into petrochemical projects, and Rs 7,000 crore into gas.

On the payments for Iran, he said IOC has $500 million dollars in pending dues, and the government is discussing the modalities of the payment.

IOC hopes the payment will be done in two or three installments, he added.

The country is set to pay Iran $700 million to clear more than one-tenth of the outstanding oil dues, ahead of the expected lifting of sanctions against Tehran.

The Reserve Bank of India will make payments of $6.5 billion in past oil dues to Iran in a calibrated manner so that there is no pressure on exchange rate, a senior finance ministry official had said on Monday. The Indian Oil stock fell 0.85 per cent to close at Rs 398.50 a piece on the BSE, as against a 0.58 per cent correction in the benchmark Sensex.