The Hindu : IOC ties up with Total

Online edition of India's National Newspaper
Saturday, Jul 05, 2003

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IOC ties up with Total

NEW DELHI, JULY 4. The Indian Oil Corporation today said it has tied up with the world's fourth largest oil firm, Total of France, for marketing of diesel and petrol additives and research and development.

The agreements were signed by the IOC Chairman, M. S. Ramachandran, and Total Director (Marketing), Alain Gremmiliet, and Total Director (R&D), Sylvan de Lescaze, a company statement said here.

Under the terms of the agreement, the IOC will market Total's diesel and petrol additives under the brand name Servo Adon D for diesel and Servo Adon P for petrol through its countrywide network of retail stations.

These additives are complementary to the premium fuels IOC Premium and Diesel Super, introduced by the IOC in almost all markets earlier this year. "These additives will enhance vehicle performance through improved fuel efficiency, lower emissions and ensuring overall better driveability,'' the company said.

The research collaboration between IOC and Total covers fundamental research in hydrocarbon chemistry, processes, development and use of pilot plants, engine testing facilities, analytical techniques and catalysts.

"The collaboration between the two oil giants will provide a vital thrust to upgrade technologies in refining processes and additives so as to cost-effectively offer best quality fuels and meet the challenges of new fuel-efficient engine designs and stringent environmental standards,'' the statement said.

To swap high cost debt with cheaper loans

Indian Oil Corporation will swap about Rs. 1200 crore high cost debt with cheaper loans to reduce its interest burden.

"We plan to prepay Rs. 1200 crore debt which carries over 10 per cent interest through fresh loans that are now available at just around 6 per cent.

Talks have already been initiated with various banks and financial institutions and the swap would take place by next year,'' IOC Director (Finance), P. Sugavanam, told PTI here today.

Swapping high cost borrowings with cheaper loans would bring down the interest burden substantially, he said, adding the modalities for the same were being worked out with banks. He, however, declined to give the names of the banks with which IOC was in discussions.

The corporation would prepay Rs. 500 crore loan, which carries an interest rate of over 10 per cent, by September. Banks have already agreed to advance fresh loan at 5.5 per cent per annum.

— PTI

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