 Mumbai:
The
state-run Indian Oil Corporation (IOC) has decided to
raise around Rs 500 crore from Bank of America for a nine-month
period to meet its working capital requirements. A senior
IOC official says his company has already applied to the
Reserve Bank of India and an approval from the apex bank
is expected soon.
"We
have a repayment coming up. Once we are through with
it, we will raise this amount from Bank of America,"
the official says. "The money will be used for
refinery expansion as well as other related projects."
IOC
is in talks with various international banks to mobilise
required funds for its expansion activities. "As
the debt equity ratio of IOC has come down from the
earlier 1.03 per cent to 0.47 per cent, fund mobilisation
from the international market is not a difficult task
now. Besides, the international agencies are offering
cheap rates," he adds.
IOC
director (marketing) N G Kannan says the corporation
has outlined a Rs 2,400-crore capital outlay plan to
overhaul its marketing operations. "We will set
up 1,000 retail outlets by the end of the fiscal to
saturate the market and dissuade other players from
entering it."
He
adds: "We set up about 552 retail outlets by this
October and will go for another 500 outlets by the end
of this fiscal. Out of the Rs 2, 400 crore for the current
fiscal, Rs 650 crore will be spent on LPG, Rs 1,400
crore on general sales, Rs 250 crore on strengthening
the infrastructure and Rs 100 crore on others."
The
1,000 outlets, which will be set up at a cost of Rs
600 crore will be the ''brand ambassadors'' of the company
and these outlets will be called Indian Oil Xtra outlets,
he says. "IOC is gearing up for competition, which
will come after the total deregulation of the oil sector.
The retail outlets will include the 125 flagship highway
retail outlets, which will be spread across 2.7 acres,
each offering various facilities."
According
to Kannan, the company plans to sell about 2,000 to
3,000 kilo litres of fuel at these outlets, which will
be set up mostly along the new highways coming up under
the Golden Quadrilateral highway project.
Post
the total deregulation, the oil prices will differ at
every retail outlet and IOC is trying to grab the market
by offering assured quality and quantity and different
services at the outlets, from automotive, consumer goods
and communication services.
Kannan
says his company has tied up with Hyundai and Tata Motors
to provide automotive solutions at retail outlets and
with the Bill Gates Foundation to sensitise truck drivers
about AIDS.
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