Date:18/05/2007 URL: http://www.thehindubusinessline.com/2007/05/18/stories/2007051805491400.htm

Back Oil marketing companies modernising retail outlets

Our Bureau

New Delhi May 17 The state-owned oil marketing companies (OMCs) are expected to spend about Rs 1,089 crore during the current fiscal (2007-08), up from Rs 732 crore in 2006-07, to modernise their retail outlets.

This is an increase of 48.77 per cent in expenditure for modernisation of retail outlets. The Union Minister of Petroleum and Natural Gas, Mr Murli Deora, informed the Lok Sabha today that the PSU OMCs — Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd — would be investing on modernisation of their retail outlets to improve appearance and provide facilities to customers with a view to effectively face the competition in the deregulated scenario and enhance the customer loyalty through improved services.

Outlets selection

While IOC including IBP has earmarked Rs 763 crore for the purpose, BPCL would be spending Rs 221 crore. HPCL plans to spend Rs 105 crore for modernisation of retail outlets.

In 2006-07, IOC (including IBP) had spent Rs 351 crore, BPCL Rs 214 crore, and HPCL Rs 167 crore on modernisation of retail outlets. The criteria for selection of retail outlets for modernisation are primarily based on location, current sales and the future potential.