IOC given nod to invest Rs 7,282 cr in developing CGD network in 9 areas

Indian Oil Corporation Limited (IOCL) on Thursday was accorded investment approval of Rs 7,282 crore for development of city gas distribution (CDG) network in 9 geographical areas. The approval was awarded to the company by Petroleum and Natural Gas Regulatory Board (PNGRB) in the 11th round of CGD bidding, the oil company said in a regulatory filing.

With these 9 under Indian Oil’s fold, the company will now have its presence in 26 geographical areas on its own along with 23 areas through its Joint Venture companies, IOC stated.

After the latest budding round, the company along with its 2 JV companies, is now present in 49 areas and 105 districts spread across 21 States and UTs, making it one of the major CGD players in the country.

Moreover, IOC, in a separate filing, also said that it has been accorded approval for implementation of Poly-Butadiene Rubber (PBR) Project at its Naphtha Cracker Complex at Panipat, Haryana at an estimated investment of Rs1,459 crore, which is expected to be operational by 2025.

The plant will have a PBR production capacity of 60,000 tonnes per annum based on technology provided by Goodyear Tire & Rubber Company which is also the leading global manufacturer of automotive tyres. Butadiene is the primary raw material for the production of PBR which shall be available from existing Naphtha Cracker Complex of the company, IOC further stated.

"The implementation of the project would reduce nation's import dependency for PBR, thereby, aiding to Atmanirbhar Bharat and Make in India vision for the nation," IOC said.

With the commissioning of this project, the petrochemical Intensity index of Panipat Refinery & Petrochemical Complex will increase from 15.9% to 18.05% along with other upcoming projects, IOC informed.

Shares of IOC on Thursday traded 0.74 per cent lower at Rs 121 on BSE during late trade.