State-run Indian Oil Corporation plans to invest Rs 56,000 crore towards capex during the 12th Plan.
“Out of this, 26 per cent would be on integration and diversification and 74 per cent on core business,” said IOC Chairman R.C. Butola at the 53rd annual general meeting here.
He said though the company had tied up the finances for the projects under implementation, concerns continued to rise with growing under-recoveries in the absence of timely receipt of compensation.
Butola said high reliance on borrowing, leads to high costs in the form of rising financing costs. The corporation has been pursuing with the Government in this regard, he added, with the expectation that in the interim, the Government will continue to provide 100 per cent compensation.
“The finance cost has doubled from Rs 3,000 crore to Rs 5,600 crore last year. We have taken it up with the Ministry of Finance for its timely release,” he added.