Shares of Indian Oil Corp on Wednesday surged nearly five per cent in early trade after the company signed a pact with Nepal Oil Corp for Rs 275 crore oil pipeline. The company has signed an agreement with Nepal Oil Corp (NOC) to lay a Rs 275-crore oil pipeline from Raxaul in Bihar to Amlekhgunj in Nepal, it said in a regulatory filing on Tuesday.
Reacting to the development, shares of the company surged 4.74 <g data-gr-id="32">per cent</g> to Rs 413.50 on the BSE. At NSE, the stock opened at Rs 393.75, then jumped 4.83 per cent to an early high of Rs 413.95 per scrip. Nepal depends on India for meeting all its fuel requirements. Petrol, diesel, domestic LPG and jet fuel (ATF) are currently trucked from IOC’s depot at Raxaul to Nepal. The 41-kilometre pipeline -- 2 km in India and 39 km in Nepal -- will initially supply petrol, diesel and kerosene. The pipeline, IOC said, will “ensure <g data-gr-id="40">long-term</g> supply of petroleum products to Nepal as well as <g data-gr-id="41">stability</g> of supplies from India to Nepal, which will benefit both the countries”. India exports about $1.1 billion worth of petroleum products per annum to Nepal. <g data-gr-id="39">Bulk</g> of this volume will be transported through this pipeline. Moreover, shares of IOC settled for the day with <g data-gr-id="37">marginal</g> gain of 0.28 per cent on the NSE, in an otherwise volatile market.
During the <g data-gr-id="36">day</g> the stock had touched an intra-day high of Rs 414 and a low of Rs 387.05 on the NSE. At the end of the <g data-gr-id="35">session</g> it was quoted at Rs 395.95, up 0.28 <g data-gr-id="43">per cent</g> from its previous closing price. The surge in the counter assumes significance as the broader market closed in the negative territory. The broad-based Nifty closed at 88.85 points or 1.13 per cent down at 7,791.85 points. The company has signed an agreement with Nepal Oil Corp (NOC) to lay a Rs 275-crore oil pipeline from Raxaul in Bihar to Amlekhgunj in Nepal. Nepal depends on India for meeting all its fuel requirements. Petrol, diesel, domestic LPG and jet fuel (ATF) are currently trucked from IOC’s depot at Raxaul
to Nepal.
The 41 km pipeline -- 2 km in India and 39 km in Nepal -- will initially supply petrol, diesel and kerosene. The pipeline, IOC said, will “ensure <g data-gr-id="29">long-term</g> supply of petroleum products to Nepal as well as <g data-gr-id="30">stability</g> of supplies from India to Nepal, which will benefit both the countries”. On BSE, however, the stock finally settled for the day at Rs 393.90, down 0.22
<g data-gr-id="31">per cent</g>.
IOC bottling unit in Punjab
State-owned Indian Oil Corporation (IOC) on Wednesday said it will set up an automated bottling plant in Punjab at an investment of Rs 110 crore.
Punjab government today handed <g data-gr-id="51">over allotment</g> letter and pre-feasible clearances to IOC here for setting up the plant in the state.
IOC has proposed to come up with this project at 30 acres of land at Goindwal which falls in Tarn Taran district of the state.