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INFRASTRUCTURE Indian Oil Corporation Limited (IOCL), India’s largest refiner, by the World Bank of Lending. MRVC then initiated discussions with
IOCL’S `2 LAKH CR INVESTMENTS
other banks. Talks with Asian Infrastructure Investment Bank have
been underway for the past few months to get a loan of `1,5,000
plans to invest `2 lakh crore in the next 5-7 years to expand its
crore and the bank has agreed to extend the loan. However, if you
refining, marketing,
want a loan, make land acquisition for 3% of the three projects,
petrochemicals
then you will get loan only.
and natural gas
business.
In the ongoing negotiations over the past few months, land
Indian Oil has
time, ”MRVC convinced the bank. The bank also decided to
planned `2 lakh
withdraw the tender a second time soon after it failed to respond
crore investments acquisition is underway and these works will be completed in
in the next five to to the earlier tender for projects like Virar to Dahanu Chowparidan,
seven years to Panvel to Karjat doubles. After discussing the assurance given
evolve into a future- by the MRVC and other technical issues, AIB agreed to extend
ready corporate that provides comprehensive energy solutions to the loan, a senior official said. The final interim budget for all
diverse user groups. As the conventional fuel business is growing, MUTP projects was approved at `19 crore. Of this, `5 crore is for
IOCL is expanding almost all refineries from Panipat to Paradip, It MUTP-2.
is also clubbing petrochemicals in all the refineries, and making Cost of projects in MUTP-1: * Virar to Dahanu Chowpidarisan –
necessary investments in pipeline and marketing infrastructure `3578 cr; * Panvel to Karjat doubles – `2783 cr; * Airoli to Kalyav
so that there will be no shortage in meeting the growing energy Advanced route –`476 cr; * 47 Air Conditioned Local – `3491
demands of the country.
cr; * Measures to prevent crossing of the Rule - `551 cr; * Other
IOCL accounts for about one-third of India’s refining capacity of technical works –`69 cr.
250 million metric tonnes per annum (mmtpa) with 11 refineries.
The company plans to invest over `20,000 crore in expansion of GST A BOOST TO MAKE IN INDIA
its petrochemicals project till 2023-24, after spending `25,000 Alstom, said the move will provide a huge impetus to global
crore in major petrochemicals projects in the Panipat and Paradip organisations such as Alstom to continue supporting the Make in
refineries. India programme. The GST Council’s move will remedy the inverted
duty structure that has burdened rolling stock manufacturers for
IOCL, along with HPCL and BPCL, is building the world’s longest over two years, besides resulting in lower prices to various metro
— 2,757-km — LPG pipeline from Kandla in Gujarat to Gorakhpur companies across the country; this will also level the playing field
in Uttar Pradesh. The company is taking up 17 pipelines at a for companies such as Bombardier, who have invested heavily in
combined cost of `24,000 crore to expand the network to about India to provide world-class railway systems and products.
21,500 km in the next three years. Indian Oil plans to invest `10,000
crore in the development of the city gas distribution (CGD) network GE Diesel Locomotives Pvt Ltd, said the GST move will boost the
in the next eight years. IOCL has spent `28,000 crore in the last fiscal Make in India initiative, while the reduction in corporate tax will go a
and plans to invest `25,000 crore this fiscal. long way in competing in global markets. Finance Minister Nirmala
Sitharaman has also announced a cut in GST on marine fuel from
FINANCIAL STRENGTH OF `5 CRORE FOR 18 per cent to 5 per cent. She said that 0.5 per cent FO has been
PROJECTS IN MUTP-1 added, a move which seems to indicate low sulphur fuel oil will also
Two years later, the projects in MUTP-2 that have been funded be charged at 5 per cent GST, although shipping industry players
will have a financial strength of `5 ctr. For the past few months, are awaiting further clarity.
meetings were being held to fund the Mumbai Railway
Development Corporation (MRVC) and the Asian Infrastructure Bank MARITIME HERITAGE COMPLEX AT HARAPPAN
(AIB), the lender. MRVC informed that the meeting was successful PORT CITY IN GUJARAT
and the bank agreed. Govt is working towards making India a hub for barge construction.
The Central Government will spend about `500 crore towards
MRVC is implementing various projects under MUTP (Mumbai setting up a Maritime heritage complex at Lothal - a Harappan
Urban Transport Project) on Central and Western Railway. MUTP-1 port city in Gujarat.
was approved on December 5. These include two air-conditioned
locals, measures to prevent crossing of the crossing between two Announcing the ambitious project on Saturday, the Union Minister
stations on the Western and Central Railway, the Virat-Dahanu of Shipping (I/C) and Minister of State for Chemicals and Fertilisers
quadrangle, the Panvel-Karjat doubles and the Aeroli-to-Kalwa Mansukh Mandaviya stated that the Maritime heritage complex
advanced route. will feature maritime history, relevant replicas, evidences, maritime
researches and resources with an aim to promote maritime
There were discussions with the World Bank to get loans for these
projects. However, for about a year and a half, discussions on logistics. Lothal remains an archeological site and tourist destination
the terms of which the loan would be given to the Panvel to in Gujarat. Mandaviya also announced the establishment of a
Virar suburban route in MUTP-1A, instead of Panvel to Karjat, an Maritime Park at GIFT City in Gandhinagar. This is aimed to promote
independent body for Mumbai Suburban Railway, were withdrawn and encourage the maritime industry sector.

106 CONSTRUCTION OPPORTUNITIES|JANUARY 2020