IOC open to new tie ups for coal power project

M. Ramesh

Chennai, Sept. 4 With the joint venture with Tata Power for a 1,000 MW project not taking off as planned, Indian Oil Corporation is open to joining hands with other private sector companies for putting up coal-based power projects.

Mr B. M. Bansal, Director (Planning and Business Development), IOC, told Business Line, on Friday, that the company was okay with a minority stake of 26 per cent.

Asked if IOC was in discussions with any company for a foray into coal-based power project, Mr Bansal replied in the negative.

Pact with Tata Power

Last year, IOC formed a joint venture with Tata Power for putting up a power project in Orissa. But there were delays in securing environmental clearances, partly because of the elections.

Power from the project was to be supplied to the upcoming 15 million tonnes Paradip refinery.

IOC has to complete the refinery by the first quarter of 2012 if it has to get incentives from the Government.

Besides, there were also issues in securing coal linkage for the project. It has been put on the backburner.

However, senior IOC officials said that the joint venture is still on.

The terms provide for setting-up other coal-fired power projects. IOC’s vision is to be present in the entire gamut of energy. It is close to signing a MoU with Nuclear Power Corporation of India for picking up stake — between 26 and 29 per cent — in a nuclear project that NPCIL would set up.

A foray into coal-fired power project fits in with the vision of the company, Mr Bansal said. Answering a question, he said that IOC was not in talks with NTPC for a joint venture.

Project in Gujarat

Mr Bansal said that IOC is also thinking of putting up a petrochemical project, attached to its Koyali refinery, to produce PTA (Purified Terephthalic Acid).

The project, still in the ‘thinking’ stage, could cost around Rs 5,000 crore.

On the proposed 15 mt refinery at Cuddalore, Tamil Nadu, Mr Bansal said IOC would take a call on whether to go ahead with the refinery in 2012-13 – after the Paradip refinery goes on stream.

Bonus shares

Our Mumbai Bureau adds: Indian Oil Corporation Ltd has informed the BSE that the company’s board of directors will meet on September 13 to consider issue of bonus shares.

The share price of IOC was marginally up at Rs 616.95 on the BSE on Friday.