Indian Oil Corp plans to revive shelved petrochemical and liquefied natural gas

15-Sep-10

Indian Oil Corp., India's largest listed company by sales, is planning a follow-on public offering by January, through which it will sell fresh shares equivalent to 10% of its equity to raise about Rs 100 bln (US$2.16 bln). IOC plans to use theses proceeds to revive shelved petrochemical and liquefied natural gas projects that were put on hold because of restricted cash flow after it sold auto and cooking fuels at state-set discounted prices. Petrochemical projects in Orissa and Gujarat are expected to be revived along with a 2.5 mln ton LNG terminal and an associated 1,000 megawatt power plant in Ennore, Tamil Nadu.