| New Year greetings from Director ( R ) |
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| January 2010 |
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Dear Colleague,
As we step into the New Year, I extend my warm wishes for a peaceful and prosperous year ahead.
We look forward to the New Year with the hope that 2010 would usher in sustainable growth and provide the requisite fillip to the economy to bounce back. The world economy that was spiraling down is stabilizing but is worryingly fragile. The UN World Economic Situation and Prospects 2010 Report has indicated that world economic growth is expected to register 2.4 percent in 2010 primarily driven by growing economies in South East-Asia including India and China. The turbulence of the past year is not over yet and the year ahead especially for the oil industry promises to be a year of resilient adjustment to a changed world.…
Even in this great downturn, India is weathering the economic storm to post robust growth numbers in all sectors leading to impressive growth in its GDP of 7.9% in the second quarter of 2009. A sustained GDP growth of 7-8% is projected for the fiscal 2009-10. India’s oil demand was not affected by the economic crisis in 2009, and next year’s oil usage is anticipated to grow further. Spurred by the rebound of the Indian Economy the Diesel consumption grew on increased demand from industry and agriculture. The demand for other industrial fuels such as liquefied petroleum gas also increased in 2009.
The days ahead will have immense opportunities and advantages for those ready to seize the opportunities thrown up by the downturn's extraordinary times. We at IndianOil need to be geared up to navigate through these tough times of lower profits and lower refining margins. Though our physical performance has been very encouraging, the financial situation remains challenging due to prevailing conditions beyond our control.
The year 2009 was the golden milestone year for IndianOil. The mega IndianOil Golden Jubilee celebrations played a catalytic role in resurgence of social bonding amongst IndianOilPeople. Inspired and revitalized, we are ready to begin the first chapter of yet another golden period with pride and a keen eye on the future.
On the operations front, IndianOil Refineries (including Bongaigaon Refinery) recorded crude t'put of 50.6 MMT in the year 2009. Overall capacity utilization of 101.8 % was achieved by the Refineries. Combined distillate yield of all the IndianOil refineries is at 75 wt% which is the highest, surpassing the previous best of 74.9 wt% in 2008.
For IndianOil the year ahead is slated to witness commissioning and consolidation. The major construction work for Naphtha Cracker and other downstream polymer units are complete and the Cracker Complex is expected to be commissioned in financial year 2009-10.
At Haldia Refinery the Hydrocracker unit pre-commissioning activities are in progress and unit is expected to be commissioned in this month. Commissioning activities are also underway for the Residue Upgradation at Gujarat Refinery and the MSQ projects. In line with the Auto Fuel Policy of the Government of India, IndianOil is gearing up to supply Petrol and Diesel quality as per BS (Euro) – III / IV norms.
I would like to take this opportunity to underline the need for strict adherence to safety practices at the work places and smooth and safe commissioning of new projects. Safe Working culture should be our highest priority in the New Year.
On the environment management front, during the year 2009, three CDM projects worth 53764 CERs have been registered with UNFCCC.
As we surge forward in the year 2010 we need to be both pro-active and long-term oriented, combining the urgency of responding to the immediate challenges with the need to build long-term capabilities, innovative technologies, operational excellence to ensure higher productivity and profitability. To cut down the Capex, IndianOil has taken the innovative approach of build-own-operate-transfer (BOOT) model for Paradip Refinery Project. Three BOO/BOOT contracts to the tune of Capex of Rs. 5000 Crore have been outsourced, which include Nitrogen and Hydrogen units, Finished products and crude tanks and Raw water supply pipeline.
The noted philosopher Henri Bergson observed, “To exist is to change, to change is to mature, to mature is to go on creating oneself endlessly”. The start of the New Year marks a fresh start, a 'refresh' for many people by embracing change and hope in the renewed spirit of optimism. As the New Year dawns it brings in New Hope...New Aspirations...New Resolutions...and A Whole New Beginning...A Refreshing Experience.
In the New Year, may the sunshine light up your days and the rainbow fill the colours of happiness in all your endeavors. My wife Ruia joins me in wishing you a happy, safe, prosperous, and refreshing New Year.
B. N. Bankapur
Director (Refineries) |
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| Board of Directors |
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B M Bansal
Chairman & Director (Planning & Business Development and HR) |
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S V Narasimhan
Director (Finance) |
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G C Daga
Director (Marketing) |
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B N Bankapur
Director (Refineries) |
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K K Jha
Director (Pipelines) |
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Dr. R K Malhotra
Director ( Research & Development)
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