News Detail

• IOC Chairman R S Butola said that the company will spend around Rs 10,000 crore on capex plans.Indian Oil Corporation may face financial strain and may have to revisit its capex plans if the government does not reimburse the under-recoveries, a top official of the company said."At present, our borrowings are Rs 77,000 crore (for all the three oil companies) which is very high compared to Rs 55,000 crore as on March 2011. There is an increase of Rs 25,000 crore because we have not received the under-recovery reimbursement from the government and consequently we had to borrow. 

• "That will definitely put pressure on our financials and cost on account of interest will also go up," IOC Chairman R S Butola told reporters."The interest outgo will be almost double this year. Last year, our interest outgo was Rs 2,600 crore and this year it will be in the range of Rs 5,000 plus crore," he added.He said every year the company will spend around Rs 10,000 crore on capex plans and "should, however, the under-recovery from the government did not happen we will have to revisit capex plans," he said.

• According to him, the oil companies are selling diesel Rs 11.30 per liter less than the market price.The dues from the government in the last quarter are around Rs 33,000 crore for the three oil marketing companies. Of which IOC's share is around Rs 16,000 crore. Meanwhile, the IOC has launched 'Sachal Swathya Seva' a Rural Mobile healthcare scheme in Nagaram village around 40 KM from Hyderabad.

Source