Money for refiners to meet fuel emission norms

Vol 5, PW 16 (26 Sep 01) News in Brief

Five Indian refineries could soon benefit from a huge injection of 'soft interest' loans from the Indian government.

We learn the Oil Industry Development Board, or OIDB, is examining a proposal to pump in a total of Rs5,000cr (approx: $1bn) over the next three years to help Indian Oil's Digboi, Bongaigaon and Guwahati refineries and the two stand-alone refineries at Chennai and Kochi to meet stringent international fuel emission control standards. We learn the total cost of the refinery revamp exercise is around Rs17,000cr ($3.6bn) but that the OIDB can only spare Rs5,000.

"This is all we can afford," an OIDB source tells this report. "The proposal is now before the board."