Indianoil is planning to go in for a complete organisational
revamp to consolidate its business activities. The company
is exiting from four out of nine joint ventures with
the aim to present a lean, thin and stronger balance
sheet in 2005-06.
will merge four subsidiaries IBP (100 per cent),
Indian Oil Blending (100 per cent), Bongaigaon Refinery
and Petrochemicals (74.46 per cent) and Chennai Petroleum
Corporation (51.88) with itself. While the merger
of IBP has moved to an advanced stage, the Cabinet committee
has approved the proposal on IOBL and IOC board has
decided in favour of BORL merger. For merger of CPCL,
the company is yet to get consent from the National
Iranian Oil Company.
entered into as many as nine JVs mostly in the 1990s.
These are, Avi-Oil India Ltd, Indian Oiltanking Ltd
(IOTL), Lubrizol India Private Ltd (LIPL), IndianOil
Petronas Private Ltd (IPPL), Petronet LNG Ltd, Petronet
India Ltd (PIL), Petronet VK Ltd (PVKL), IndianOil Panipat
Power Consortium Ltd (IPCPL) and Petronet CI Ltd (PCIL).
these, Avi-Oil, IOTL, LIPL, IPPL and PLL will be retained.
The last one, Petronet LNG, is the largest of the lot
with a turnover of Rs 1,945 crore and is developing
LNG import and regassification facilities at Dahej and
Kochi. The 12.5 per cent joint venture with BPCL, GAIL,
ONGC and others is set to gain with the country's increasing
thrust on using imported LNG.
subsidiaries and joint ventures reflected total revenue
of Rs 23,586 crore and total assets of Rs 9,227 crore
in 2003-04. IOC's share in assets of JVs was quoted
as Rs 203 crore in 2003-04.