IndianOil resumes work on Rs 1.04 lakh cr worth projects
Statesman, Delhi   13-Jul-2020

Indian Oil Corporation (IOC), the nation's biggest oil firm, on Wednesday said with easing of lockdown restrictions, it has resumed work on projects worth Rs 1.04 lakh crore which will help address future energy demand as well as kickstart the economy. IOC said it is on track to achieve its planned capital spending of Rs 26,143 crore in the fiscal to March 2021, but future capex depends on long-term demand potential in the country.

"Since the easing of the lockdown, IOC has commenced works on 336 projects...at an anticipated project cost totalling to Rs 1.04 lakh crore," the company said in a statement.

The government is falling back on public sector companies to revive the economy, hit hard by the COVID-19 pandemic, and is pushing them to frontload their capital spending which will help generate demand in industry as well as create jobs.

"The amount spent on these (336) ongoing projects is about 1,764 crore till the end of June 2020. Additionally, more than 50 projects have also resumed since July 1, 2020," IOC said.

IOC said it is targeting a capex of Rs 26,143 crore during financial year 2020-21, and in the first quarter achieved expenditure of Rs 2,674 crore, overcoming various issues faced on-ground due to the coronavirus pandemic.

These projects are crucial from the perspective of addressing future energy demands as well as employment generation while kickstarting the economy with a focus on 'Atmanirbhar Bharat', it said.

The FY21 capex is "on track," it said. "IOC's future capex plans depend on long-term demand potential in the country."

The nation's largest oil refining and marketing company said it resumed works at various project sites across the country after the easing of lockdown from April 20 and more projects got added as restrictions were eased month after month.

"These mega projects would not only boost the economy, ensure smooth supply of petroleum products across the nation and also provide much-needed relief to the people looking to get back to work after the lockdown," it said