Chennai, Aug 17 () : Chennai Petroleum Corporation Ltd (CPCL),a subsidiary of the Indian Oil Corporation (IOC) is planning to invest about Rs 760 crore in the current year.
Resid project and crude oil pipeline project connecting Chennai port with company’s refinery at Manali, north of Chennai would take up 50% of the investment. The amount for up-gradation of company’s resid project which is awaiting environmental clearance is estimated to be around Rs 3000 crore.
The company’s resid project was supposed to go on stream end of 2013, but now it will be delayed. Company officials say that it will take 30 months to commission the project from the time they get environment clearance.
Director -finance, CPCL said the project will help the company to improve its gross refinery margin (GRM) by $1-2 per barrel, its escalation may not be their concern now since economic slow down still continues when asked whether the delay will increase the cost of the project.
State owned IOC, a listed company has the distinction of posting nation’s biggest quarterly net loss at Rs 22,451 crore as the government failed to compensate it for losses on fuel sold at controlled rates. IOC’s previous largest loss is of Rs 7,485 crore registered in Q2 of 2011-12 fiscal.
R S Butola IOC Chairman said that the losses (in April-June) are primarily because it did not get Rs 22,451 crore in government subsidy. State owned state fuel retailers sell at government controlled rates which are way below market price of diesel, domestic LPG and kerosene.
Petrol decontrolled in June 2010 is sold at a loss because of inflationary reasons. IOC loses Rs 1.37 per litre on petrol, Rs 12.13 a litre on diesel, Rs 28.54 on kerosene and Rs 231 per 14.2-kg LPG cylinder.
In the same period a year ago , Rs 3,718.70 crore loss was reported.