IOC going ahead with Rs 4,500 Cr LNG project in Tamil Nadu
Chennai: State-run Indian Oil Corporation is "going ahead" with its Rs 4,500 crore LNG terminal project in Tamil Nadu to supply piped gas in the southern region and would soon "float tenders" for it, a top official said on Wednesday.
Indian Oil Corporation signed an agreement last year with Tamil Nadu Industrial Development Corporation (TIDCO) in the presence of Chief Minister J Jayalalithaa to set up the Rs 4,500 crore liquefied natural gas terminal in Chennai. The initial capacity of the facility would be five million tonne per annum.
"We are going ahead with that. Whether we select partner now or later, we are going ahead. Currently, some of the bids are out. Some bids will be out. Some tenders will be out now, " Indian Oil Corporation, Chairman and Managing Director, R S Butola told reporters here.
"We will appoint the contractors for the tanks and jetty. This will go through the construction," he said.
The terminal is likely to be completed by 2015.
Commenting about the six million tonne refinery to be set up by Indian Oil Corporation's group company Chennai Petroleum Corporation in Tamil Nadu, he said it was in the "conceptual stage" and the project is slated to come up during the 13th Five Year plan.
To a query on whether the company's investment plans were on schedule, he said: "For the 12th Five Year plan, Rs 56,000 crore projects are on schedule. Our target is to complete the Paradip refinery."
"We are hoping that first unit (of Paradip Refinery) will get into ready for start position at least by end of this year and commission in next three to four months," he said.
"As far as greenfield projects are concerned, we have said that we will set up in the West Coast. We are currently examining it. And some point in future, we will take a view in setting up a refinery in West Coast," he said.
Asked whether oil marketing companies would revise the fuel price he said: "We will see. I mean, as far as petrol is concerned, we will decide whenever it is required to increase or decrease. It is absolutely free".
Referring to the under-recoveries, he said: "As far as diesel is concerned, what we request the Government is that we should be given our recovery in time so that we do not lose money on the borrowing which we have to make. Because, interest cost is a big burden on us".
"The last I saw, the under recovery is slated to slated to be in the range of Rs 1,38,000 - 1,40,000 crore (for oil marketing companies). Out of this, Indian Oil will be around Rs 70,000 crore which was Rs 40,000 crore last year. That is a big jump", he said.