05 Sep 2011
PETROLEUM BAZAAR
To de-risk its balance sheet from rising
under-recoveries in the long term, IndianOil (IOC) has forayed into solar
power. The maharatna firm had earlier entered wind and nuclear power
generation.
IOC will set up a 5 mw solar photovoltaic plant
near Jodhpur in Rajasthan, AMK Sinha, director (planning and business
development), told Financial Chronicle. The contract has been awarded to Bharat
Heavy Electricals (Bhel), he added.
IOC’s strategy is to diversify its portfolio
across the hydrocarbon chain. “We want to be among the top three players in
every business,” Sinha said. “There is a close link between oil and gas and
renewable energy, as these are part of the same hydrocarbon chain,” said Arvind
Mahajan, executive director and head of energy and natural resources at KPMG.
“Non-conventional sources of energy will not
replace conventional sources immediately, but these will be important in the
long run. So, companies need to build capabilities for the future,” Mahajan
said. IOC’s losses widened to Rs 3,719 crore in first quarter of this financial
year, mainly due to not receiving subsidy on time.
“All these (solar and wind power) are at a very
nascent stage. These portfolios would not contribute much to a company's bottom
line. In a very long-term perspective for next 20 years, non-conventional
energy would be a major source of energy,” said Alok Deshpande, a research
analyst at Mumbai-based Elara Securities (India).
At present, IOC has debt in the order of Rs
70,000-71,000 crore, PK Goyal, director (finance), told Financial Chronicle.
The company is yet to receive Rs 8,200 crore of government compensation.
Courtesy: MYDIGITALFC
Source: Petroleum BAAZAR
No comments:
Post a Comment