State-owned Bharat Petroleum Corporation Ltd (BPCL) is in talks with neighbouring countries including Bangladesh and Myanmar and others to set up product pipelines, the senior executives of the company said on Tuesday
The focus on neighbouring countries, especially Myanmar, seems important considering the recent tension between India and China over Doklam. Also, plans of similar nature are also in pipeline for Sri Lanka and Thailand.
D Rajkumar, chairman and managing director, BPCL said that it is being done as part of the 'friendship' with the neighbouring countries.
China too on its part is making similar inroads in order to increase its standing as a regional and global power.
Indian Oil Corporation (IOC) is also eyeing refinery, pipeline and retail in the neighbouring countries of Bangladesh, Myanmar, Nepal and even Vietnam as part of India's ' Look East' policy.
Meanwhile, BPCL, which has been losing market share in recent quarters, plans to invest around Rs 45,000 crore in petrochemical business over next five years. The shift towards petrochemicals will help the company in not only diversifying but also maintaining profitability in the scenario of falling oil prices and adoption of electric vehicles (EV).
Secondly, the company is keenly observing the movements happening in EV sector and has not ruled out getting into power charging stations or lithium battery production, etc, as part of their strategy to 'co-exist with changing times'. The Indian government has announced a deadline of the year 2030 after which all vehicles produced should be of EV make.
"EV is going to be a reality. But to what extent we need to understand," said Rajkumar.
He said there are enough scope for growth in niche and commodity petrochemicals.
The company executive said that the newly acquired Navratna status is also expected to help the company in raising larger loans at a more competitive rate and allow it to venture into larger projects in the international market. The PSU is expecting to clock over Rs 10,000 crore in profit this fiscal.
AMID CHINA STAND-OFF
- IOC is also eyeing refinery, pipeline and retail in neighbouring countries
- BPCL plans to invest around Rs 45,000 crore in petrochemical business
