As a strategic diversification planned to capture fat margins in power trading, the state-run Indian Oil Corporation (IOC) is planning to enter the merchant power business, its chairman and managing director RS Butola has said.
IOC, which currently has a captive power capacity of around 1200 mw, plans to set up merchant power plants with petcoke as a fuel. Petcoke is a refinery residue. IOC, the country’s largest oil refiner, produces it in large quantities at its refineries.
Butola said IOC is working out a detailed blueprint for the foray. “While refining and marketing of fuel will continue to remain IOC’s strength and core business area, my endeavour will be to build a strong technical expertise in the E&P (exploration and production),” he said. “Till we do so, I will strengthen IOC in the core business areas as well as the entry into gas.”
Indian Oil is a partners of the country’s largest LNG firm, Petronet LNG Ltd.