IOC plans to monetise its assets through SPVs, arms

NEW DELHI: India’s largest oil refiner and fuel retailer, IOC, is looking at monetising its pipelines and storage infrastructure.
The plan is to create special purpose vehicles (SPVs) or subsidiaries to tap private equity and venture capital funds to maximise utilisation of assets, and lock in future revenue.
The option of BOOT (build, own, operate and transfer) is also on the table as the company has successfully implemented this model for the tank farm, the vital storage facility, at its 300,000bpd (barrels-per-day) Paradip refinery in Odisha.
Sources told TOI the discussions among the top management and the parent oil ministry revolve around creating SPVs or subsidiaries and then offering stake in them to PE or VC funds. The discussions are at a nascent stage and the quantum of stake to be offered will depend on the assets and their layouts.