NEW DELHI: In its effort to monetise non-core assets and leverage operational efficiencies, State-run Indian Oil Corporation (IOC) said on Tuesday that it plans to sell hydrogen generating plants at its oil refineries. According to Chairman Shrikant Madhav Vaidya, the company will sell its hydrogen generating unit at its Gujarat refinery to begin with. Based on the experience, it may take up units at other refineries, he pointed out.
The planned sale is part of thegovernment’s asset monetisation agenda aimed at generating revenue from selling unutilised or part utilised assets to private investors. “These (hydrogen generating units) are already operating units. Now we are trying to leverage the efficiency of operations by handing it over to the licensor of the unit,” Vaidya said.
Hydrogen is mostly produced from natural gas and naphtha and is used in the processing of intermediate oil products and for the removal of sulphur from refined fuels to meet emission standards. The main consideration will be the asset value and the operation and maintenance (O&M) charge that the new operator will charge IOC, Vaidya pointed out.