GN Bureau | January 11, 2016
Indian Oil Corp aims to invest Rs 40 billion ($600 million) in upgrading its newest refinery in Paradip, Odisha, after the government decided to fast track the introduction of road vehicle fuels which are compliant with Euro VI emission standards to April 2020. The refinery is IOC’s most advanced plant that can process the heaviest and dirtiest crude oil available at a cheaper rate.
The 300,000 barrels per day refinery, which was commissioned last year, was designed to produce Euro IV and Euro V-compliant fuels. But the decision to bring forward the introduction of Euro VI fuels to combat rising pollution requires installation of some new units and upgrades of existing ones.
IOC needs to add facilities like Isomerisation, Diesel Hydrotreater and a Hydrogen units to produce Euro VI compliant fuels at the Paradip refinery.
G S Singh, executive director for technical operations at the refinery, told reporters that the IOC would commission a reformer, and vacuum gas oil hydrotreater this month, and an alkylation unit next month.
The refinery is expected to run at up to 60 percent capacity in the current fiscal year to March 31 as some units have yet to come online. The crude processing capacity could rise to 80 percent once other new units are commissioned, Singh said.
It will operate at full capacity from the fiscal year 2017/18, when its gross refining margins could go up significantly to $12-$14 per barrel, Singh said.
India’s fuel demand is rising and the International Energy Agency has said the country could become the most important driver of energy demand growth in the world in the years to come.
Paradip refinery will mainly cater for markets in eastern and southern India, currently fed by fuel sourced from other local refiners and imports.
Meanwhile, Indian Oil has tied up with trucking and logistics start up Fortigo, which will help it address issues related to ferrying of its fuel by small truck owners. Fortigo is funded by various venture capitalists including Nandan Nilenkani.
Fortigo will "provide technology-based solutions to truck owners for managing their inventories and planning their operations and journeys effectively to save time and reduce transportation costs", IOC said in a statement.
A large part of fuels like petrol, diesel and LPG produced by IOC are moved from its refineries to consumption centres in trucks.
Health groups have expressed their disappointment with a February 12 order of the supreme court, refusing to review or recall an earlier order disposing off a case against the mala fide suspension of the vaccine public sector units (PSUs) and government’s tendency to pamper private sector with public
The Punjab National Bank`s fraudulent transactions worth Rs 11,300 crore should act as a strong trigger for the government for reducing its stake to less than 50 percent in the banks which should then be allowed to work on the lines of private sector lenders with a full sense of accountability to their sha
Budget 2018, forecast to be a “please all” budget, has come out as a “disappoint all” budget. The public is looking askance at a budget that gives with one hand but takes away with both, the Sensex has gone into a tailspin and the pink papers are issuing dire warnings.
Should public sector banks be privatised?
Billionaire jeweller Nirav Modi, whose properties are being searched after Punjab National Bank reported a massive fraud of Rs 11,000 crore, is a good reason why banking reforms
“Gender based discrimination is worldwide and not alone in India. Offences against women are much more severe in cases of international trafficking, forced prostitution and pornography, women including migrant and refugee women face double barriers on virtue of their gender,"said Dr Rashmi M Oza