Mumbai: State-run oil marketing firm Indian Oil Corp. Ltd (IOC) will invest Rs.56,000 crore across its businesses during the 12th Five-Year Plan period ending 2017. “Out of this, 26% will be on integration and diversification, and 74% on core businesses,” IOC chairman R.S. Butola stated at the company’s annual general meeting held in Mumbai on Friday.
Butola said that the company had tied up the finances needed for the projects under implementation. He also said that there were continuing concerns due to growing under-recoveries in the absence of timely receipt of compensation.
“High reliance on borrowings lead to high costs in the form of rising finance costs,” Butola said. “The corporation has been pursuing with the government in this regard and it is expected that in the interim the government will continue to provide 100% compensation.”