Addressing a press conference on Thursday, IOC chairman MA Pathan said that apart from dismantling of the administered price mechanism (APM), the conscious decision of the company to reduce costs through energy saving exercises was beginning to yield results in the form of better financial performance.

He said that IOC was already showing better results by posting a 105 per cent increase in net profit during the first quarter of the current financial year.

Pathan further added that IOC had passed on as much as Rs 550 crore to the consumers on account of subdued crude prices in the international market. The oil industry as such, he said, had passed on as much as Rs 1,000 crore to the consumers.

During the Ninth Plan, he said, IOC had identified investments worth Rs 25,000 crore and projects worth Rs 9,500 werecurrently in hand. Projects worth Rs 5,500 crore, he said, were likely to be completed during the current year. These include Panipat refinery, Haldia-Barauni pipeline and various other upgradation works at different refineries.

He said that the board of directors had approved setting up of a nine-million-tonne refinery at Nagapattinam in south India as a joint venture. The IOC, he added, also proposed to expand the Barauni refinery to six million tonnes and Panipat refinery by another three million tonnes. The future projects also include setting up of a hydro-treater facility at Guwahati refinery and a fluidised catalytic cracking unit at Haldia refinery. The pipeline capacity, Pathan said would also be augmented to keep pace with increase in the refining capacity.

Replying to questions on disinvestment, he said, the government had decided to offload 10 per cent of IOC shares in domestic and GDR markets. He added that the discussions were in final stages and soon a decision would be taken ondisinvestment modalities. Pathan, however, refused to take a view on the finance ministry's proposal of special purpose vehicle (SPV) for privatisation of public sector undertakings. He only said that the proposals relate to the next fiscal and IOC had yet to discuss them.

Speaking about the activities of the corporation to arm itself to face competition from international oil giants, Pathan said IOC was exploring new areas for collaboration with Marubeni of Japan and Petronas of Malaysia.

Stating that IOC had opened offices in Kuala Lumpur, Kuwait and Dubai, he said that the corporation was also looking into various areas of collaboration with Emirates National Oil Company of UAE and the national oil companies of Trinidad and Tobago. A joint collaboration agreement has been signed with Amoco, Gail and IIP on commercialisation of Di-methyl-ether (DME) technology and setting up of a project for manufacturing and marketing of the new fuel.

Pathan added that a technical collaboration exists with Air BP ofUK for upgrading aviation services and a joint statement has been signed with Petroleum Authority of Thailand for collaboration in several areas.

Pathan said that a joint venture company IOC Petronas was being incorporated to set up LPG import facilities at Haldia with Petronas of Malaysia.