Oil ministry asks PSU oil refineries to improve margins; roadshows for IOC stake sale begin in US

An IOC refinery in Gujarat

GOVERNMENT has asked the petroleum refineries, especially those in the public sector to upgrade their refining capacities so that they can match global standards. Oil secretary Vivek Rae said, "Petroleum refineries should ensure pace setter performance for improving margins, reliability and efficiency," he said while inaugurating the 18th Refinery Technology Meet (RTM) in Kochi on Monday.
BPCL chairman and managing director S Varadarajan underscores the need...
to innovate in all sectors of petroleum business. The three-day-long meet is being organised by the Centre for High Technology and Bharat Petroleum Corporation Ltd (BPCL).
The Centre for High Technology is a satellite organisation of ministry of petroleum & natural gas.
The RTM, the theme of which is 'Pace setter performance for improving margin, reliability and efficiency', would deal with various aspects of global energy scenario, refining process optimisation, up-gradation and integration, among others.
At present, Indian Oil Corp (IOC) controls 10 of the country's 22 refineries.
Meanwhile, government will begin roadshows today in US for sale of its 10-percent stake in the largest PSU oil firm, Indian Oil Corp (IOC). The disinvestment bid is likely to fetch Rs 3,900 crore. Roadshows are also planned in London, said officials.
Officials from ministry of petroleum and natural gas and the department of disinvestment will try to lure prospective investors for IOC stake sale. This is crucial for meeting government's disinvestment target of Rs 40,000 crore.
IOC chairman RS Butola had earlier said the department of disinvestment (DoD) will want to assess the market conditions at the roadshows and will take a view on the stake sale based on feedback.
IOC believes the government should not launch the stake sale now as the company share price is "unduly depressed".
The department of disinvestment (DoD) is most likely to miss the target of Rs 40,000 crore from the sale of shares in public sector units this fiscal as it has so far raised only Rs 1,325 crore.
The sale of 19.16 crore IOC shares is likely to raise about Rs 3,900 crore. At present, government holds 78.92 percent stake in the country's largest oil refiner.
Originally, the roadshows were to be held from October 6 but were postponed after opposition from IOC and the oil ministry.