Lankan IOC to expand its infrastructure in Lanka

Colombo, Oct 10: The giant Indian Oil Company is set to expand its infrastructure in Sri Lanka and is building a lube oil blending plant in the restive eastern port city of Trincomalee at an investment of five million dollars.

Visiting Chairman and head of the Lanka IOC, Sarthak Behuria, said the IOC was looking forward to provide value-added fuels and lubricants that would expand the product range in the competitive fuel market in the neighbouring island nation.

''The ongoing construction of a lube oil blending plant at Trincomalee with an annual capacity of 18 million liters at an investment of 5 million dollars is scheduled to be commissioned by June 2007,'' Mr Behuria told reporters here today, adding, the IOC wanted to be more competitive rather than depend on the traditional diesel and petrol sales alone.

He said Lanka IOC has agreed to settle with 5.16 billion rupees in cash and bonds from the Sri Lankan government as settlement for having sold fuel below costs without the import subsidy, compromising nearly 25 per cent of the dues.

An agreement was scheduled to be signed today, but it was held up due to legal issues, which Mr Behuria said would hopefully be settled in a couple of weeks.

UNI