Monday, 4 July 2016

Indian Oil Corp: Will Take 37.5% Stake for Proposed Airline Fuelling, to Invest 40,000 Crore for Refining Capacity

New Delhi: Indian Oil Corp (IOC) will take 37.5 percent stake to manage fuelling facilities at all airports controlled by the Airports Authority of India (AAI) in a joint venture with the latter. While AAI will have a quarter of the stake, Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) will have 18.75% each in the venture negotiated for long.


Reports are that Reliance Industries, Indian Oil Corp, HPCL and BPCL had not yet made any comment in the announcement. But the proposed joint venture will is likely to facilitate about one-third of aviation fuel business in India. Remaining airports in the country, in cities like Delhi, Mumbai, Hyderabad and Bengaluru, has private airport or separate joint ventures with state oil firms to manage their fuelling facilities.
 In another development, IOC will invest Rs. 40,000 crore to extend its refining capacity to 100 million tonnes by 2022. The largest domestic oil firm has a refining capacity of 80.7 MT per annum. “As we see, (fuel) demand is expected to grow at 3.5-4 per cent CAGR and we need to build capacities to meet that requirement,” said IOC Direct Sanjeev Singh.


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