IOC to invest over Rs 37,000 crore in TN

Indian Oil Corporation (IOC) plans to invest around Rs 7,112 crore in infrastructure projects across Tamil Nadu over the next three years as the energy major looks to expand its petroleum and gas distribution network in the state.

At the group level, including Chennai Petroleum Corporation Ltd (CPCL), the investment in Tamil Nadu is expected to reach around Rs 37,112 crore, according to a senior IOC official.

"The investments will be in pipeline expansion, construction of a captive jetty, additional facilities for petrol and diesel handling, POL (petroleum, oils and lubricants) terminals at an outlay of Rs 7,112 crore in the next three years," R. Sitharthan, Executive Director, Tamil Nadu and Puducherry, told IANS.

A major portion of the group investment will come from CPCL, which plans to expand its refinery at Narimanam. The refinery's capacity is expected to be increased to nine million tonnes per annum, involving an investment of around Rs 30,000 crore.

IOC is also expanding its presence in the city gas distribution sector. The company recently won distribution bids for Coimbatore and Salem and plans to invest in developing gas networks in these cities.

The expansion will be supported by new pipeline infrastructure. Sitharthan said pipelines were being laid at several locations to transport natural gas from the Ennore LNG terminal to industrial consumers, as well as to move other petroleum products.

Another major project is IOC's joint venture for a five-million-tonne-per-annum LNG terminal at Ennore. The facility involves an investment of around Rs 5,151 crore and was expected to be commissioned by December.

The planned investments will strengthen Tamil Nadu's fuel storage, transportation and distribution infrastructure while also expanding access to natural gas for industries and other consumers. The projects are expected to play a significant role in meeting the state's growing energy demand.