17 September 2010 10:08 [Source: ICIS news]
MUMBAI (ICIS)--Indian Oil Corp (IOC) plans to sell a 10% stake towards the end of the year to raise Indian rupees 100bn ($2.17bn) to fund expansion plans in states of Orissa, Gujarat and Tamil Nadu, a company source said on Friday.
The lack of funds had forced the state-owned IOC to put on hold its petrochemical projects in Paradip, Orissa state and Koyali in ?xml:namespace>
“The sale of shares will allow IOC to begin work on the stalled projects,” the source added.
The infusion of funds would also allow IOC to go ahead with its 2.5m tonne/year LNG terminal and an associated 1,000 mw power plant in Ennore, Tamil Nadu state, the source added.
While feasibility studies had been completed in March, the company had not begun construction as it was in the process of securing finance for the project, the source said.
At Paradip in Orissa, IOC is constructing a 15m tonnes/year refinery which will be ready by 2011-2012.
In addition to the refinery, the Paradip complex will house a crude and vacuum distillation unit, a hydrocracking unit, and a delayed coker unit in the first phase of development, the source said.
The cost of the petrochemical project in Paradip would come to around Rs150bn, the source added.
At Ennore in Tamil Nadu, IOC will build a 2.5m tonnes/year LNG terminal expandable to 5m tonnes/year.
The gas terminal is expected to be commissioned by 2015, according to IOC’s website.
($1 = Rs 46.15)
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