1.1 INDIAN ECONOMY & ITS GROWTH
Growing global engagement; merchandise exports of over US$105 bn and imports of US$156 bn. Both growing at over 20% annually. Surging Foreign Exchange Reserves > US$165 bn. FII investments of US$14 Bn and FDI of US$ 8 Bn in 2006-06. 70% of the companies with FDI yielding higher profitability that that of the parent company. Some of the largest infrastructure creation in the world (Golden Quadrilateral -5,400 kms) planned investment of about USD 300 bn during the next 10 years for creation of expressways and roads. Formation of Special Economic Zones (SEZ), more than 300 zones planned during the next 3 years through public-private partnership. Liberalize and ease domestic consumption and investment- India ranked 41st in competitiveness. Strengthen the contribution from the export markets.
Maintain financial and currency stability – Controlled modern inflation – Cap on fiscal deficit, bill on fiscal responsibility soon. Clearer focus on planned government capital expenditure.
1.1.1 IOCL & ITS ROLE IN INDIAN ECONOMY:
IndianOil is India’s largest commercial Organization. It is highest ranked Indian company in the latest Fortune ‘Global 500’ listings, ranked at 98th position, this year. The increasing energy requirements together with a slow increase in domestic crude production is leading to higher import bill as the country’s oil imports is more than 75 percent of total oil consumption.
It is estimated that coal import which was negligible in the past is also likely to touch around 30% of the total coal requirement in the next few years. The competition for acquiring energy resources is intensified globally. It is causing a serious concern as the Indian economy will require to intermingle with an ever expanding global fuel market. We are determined to achieve the growth path in an environmentally responsible manner in line with national target to cut the emissions intensity of GDP by 20-25% by 2020 compared to the 2005 level. Our projected investments of over Rs.47,000 crore in new and additional refining capacity, enhanced pipeline network and marketing touch-points ensure that our nation will always have a secure and reliable energy resource for development. The Corporation’s 15 MMTPA Paradip Refinery Project on the east coast is also a significant addition to the nation’s refining infrastructure and opens up significant export opportunities. In the recent years, while the rapid growth in the Indian economy has increased its appetite for petrochemicals, the per capita consumption still continues to be way below the world average. The demand for petrochemicals in the domestic segment in India is very strong and slowly, we are seeing the established markets move to specialty polymers while much of India and China are focusing on commodity polymers.
1.1.2 GROWTH OF THE INDUSTRY:
Indian Refineries Ltd. was formed with Mr Feroze Gandhi as Chairman. 1959
Indian Oil Company Ltd. was established on 30th June 1959 with Mr S. Nijalingappa as the first Chairman.
Agreement for supply of SKO and HSD was signed with the then USSR. M.V: "Uzhgorod" carrying the first parcel of 11,390 tonnes of HSD docked at Pir Pau Jetty in Mumbai on 17th August 1960. 1962
• Guwahati Refinery was inaugurated by Pt. Jawaharlal Nehru. • Construction of Barauni Refinery commenced.
• Foundation was laid for Gujarat Refinery
• Indian Oil Blending Ltd. (a 50:50 Joint Venture between IndianOil and Mobil) was formed.
• Indian Oil Corporation Ltd. was born on 1st September, 1964 with the merger of Indian Refineries Ltd. with Indian Oil Company Ltd. • Barauni Refinery was commissioned.
• The first petroleum product pipeline from Guwahati to Siliguri (GSPL) was commissioned. 1965
• Gujarat Refinery was inaugurated by Dr.S.Radhakrishnan, the then President of India. • Barauni-Kanpur Pipeline (BKPL) and...
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