Indian Oil plans Rs56,000 crore capex during 12th Plan

State-run Indian Oil Corporation has plans for investment of Rs56,000 crore towards capex during the 12th Plan.

''Out of this, 26 per cent would be on integration and diversification and 74 per cent on core business,'' said IOC chairman RC Butola at the 53rd annual general meeting in Mumbai.

He added though the finances had been tied up for the projects under implementation, concerns continued to rise over increasing under-recoveries in the absence of timely receipt of compensation.

According to Butola high reliance on borrowing, led to high costs in the form of rising financing costs. He added, the corporation had been pursuing with the government in this regard, in expectation that in the interim, the government would continue to offer 100 per cent compensation.

''The finance cost has doubled from Rs 3,000 crore to Rs 5,600 crore last year. We have taken it up with the Ministry of Finance for its timely release,'' he added.