Investments not aimed at profits alone: IndianOil chairman B. Ashok
New Delhi   06-Mar-2017

With private investors remaining shy of making large bets, state-run companies are taking the lead in asset creation and driving economic growth. The large capital spending by public sector oil companies are not only seeking to narrow the country's energy deficit but also meeting government's strategic goals of creating jobs and correcting the disparities in regional development. Indian Oil Corp. Ltd, the nation's largest refiner, will spend Rs 1.8 trillion over the next six years. Does such a huge spending in infrastructure at a time global oil producers have cut supplies to boost prices make business sense? Chairman B. Ashok explains in an interview. Edited excerpts

It is well known that India is a bright spot in the world economy and our growth story is bound to continue. If we are growing at say 8-9%, with an emphasis on manufacturing industry, energy requirement will be very high. All global reports predict that India will be heavily dependent on hydrocarbons at least until 2040. Our expansion plans are based on that premise. Secondly, we cannot start planning for adding energy capacity after demand comes up.

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