Is the ghost of past subsidies, under-recoveries troubling IndianOil?
What does one expect from an oil marketing major when crude is on a downtrend and retail fuel prices are still high? A robust financial. On paper, that should have been the case with Indian Oil Corporation Limited (IOCL). And yet, the numbers tell a different story. IOCL's net profit for FY25 collapsed to INR12,962 crore – a whopping 67% plunge from INR39,619 crore the year before. Even in the fourth quarter of FY25, when crude prices stabilised
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Time of India
a day ago
- Time of India
DeepDive: India's green hydrogen journey starts at ₹397 per kg
Mumbai: India's recent green hydrogen price discovery through Indian Oil Corporation 's (IOCL) landmark tender has drawn mixed reactions from industry experts, reflecting both optimism about market potential and concerns over long-term competitiveness. The final price — ₹397/kg which is about $4.67/kg — discovered in the reverse auction process is being seen as a turning point for India's emerging green hydrogen sector. India's bid seen as globally competitive According to Ravi Shekhar , managing director of Eninrac Consulting, L&T's $4.67/kg green hydrogen bid is globally competitive, lower than EU imports and close to Middle East prices. 'India, led by players like L&T Energy Green Tech , is emerging as a competitive hub for green hydrogen production. With a price of $4.67/kg (₹397/kg), L&T's hydrogen offering is already aligned with global low-cost producers such as Saudi Arabia and the UAE, whose prices range between $4.50–$6.00/kg,' he said. He added that when factoring in logistics and import costs, Indian green hydrogen was cheaper than most EU imported hydrogen, which landed at ₹500/kg to ₹600/kg. This cost advantage is further reinforced by India's ultra-low solar tariffs of ₹2.5 to ₹3 per unit, among the lowest globally, which significantly reduce the cost of electrolysis-based hydrogen production. However, not all stakeholders are as optimistic. Green v/s grey Prashant Vasisht, senior vice-president and co-group head at ICRA, said that the prices discovered recently were in line with current trends and almost double the price of grey hydrogen derived from natural gas and therefore not very competitive. He said that economics and technology were yet to refine further for green hydrogen to become competitive. 'The price of green hydrogen is still some time away from attaining parity with grey hydrogen. Importantly, renewable electricity prices have to reduce substantially along with the capex of electrolysers among other things for green hydrogen to become competitive,' he said. In contrast, Nitin Yadav, head of hydrogen - India at Gentari, a clean energy company and a wholly-owned subsidiary of Petronas, called the price discovery a 'significant milestone' and said that their initial assessment suggested the prices were 'quite competitive'. 'The price discovery through the IOCL tender sends a strong signal to project developers that green hydrogen has a viable business case in India. The finalisation of this tender has instilled much-needed confidence in the market and laid the groundwork for scaling the hydrogen economy,' said Yadav. He added that the price discovery should lead to an increased demand for in-situ green hydrogen projects in India. Shekhar said that between 2024 and 2027, early industrial adopters, particularly in refineries and fertilizer production will drive initial demand for green hydrogen. 'This foundational uptake will be critical for de-risking investments, with $2–3 billion expected to flow into domestic electrolyzer manufacturing. By 2030, deeper decarbonization in hard-to-abate sectors like steel and transport will take shape, positioning India to capture 5-10% of the global electrolyzer market,' he added. Impact on offtake Regarding impact on offtake, ICRA's Vasisht added that as prices were significantly higher, offtake agreements would remain limited. 'If we aim for competitive pricing, the offtake must be firm and committed for the full 25-year term,' said Gentari's Yadav. He added that there should be more competition in this sector amongst project developers, which would help the green hydrogen ecosystem as well as the consumers. On offtake, Shekhar added that the Panipat project's 25-year offtake deal at ₹397/kg with IOCL would secure price certainty and enhance project bankability, setting a credible pricing benchmark for future bids. With scale-driven efficiencies and larger capacities, prices might fall below ₹350/kg, he added.
Fibre2Fashion
4 days ago
- Fibre2Fashion
India's LAB prices dip amid rising imports & softening feedstock costs
India's surfactant sector still relies heavily on linear alkyl benzoene (LAB), with local demand expected to reach over 720 KTA in fiscal 2024 (FY24) and 767 KTA in fiscal 2025 (FY25) with a growth rate of CAGR 6.53 per cent. Due in large part to India's expanding presence in the global soap and detergent industry, the market has demonstrated resilience in the face of global challenges. India's LAB demand is rising, but prices fell from ₹132/kg (~$1.55/kg) in Jan to ₹129/kg (~$1.51/kg) in May 2025 due to weak upstream costs, rising regional supply, and cautious buyer sentiment. Imports are expected to ease with IOCL's capacity ramp-up. Prices may drop ₹3â€'7/kg (~$0.04â€'$0.08/kg) from Junâ€'Aug 2025 amid stable but soft LABSA demand and higher feedstock availability. In fiscal 2023 (FY23), Indian Oil Corporation Ltd (IOCL) increased its LAB production capacity from 120 KTA to 162 KTA in order to meet the growing demand. However, India's LAB production fell to 400 KTA in FY23 from 457 KTA the year before as a result of planned shutdowns and de-bottlenecking efforts. With the exception of Reliance Industries Ltd's 60 KTA halted plant, the domestic operating rate was 93 per cent. This shortfall in production was offset by a rise in imports, which peaked at 337 KTA in FY23. With IOCL's capacity enhancement now complete, imports are expected to moderate, reflected in a projected 281 KTA and 310 KTA import level for FY25 and fiscal 2026 (FY26). Current Market Drivers (as of April–May 2025): From January to April 2025, Indian Linear Alkyl Benzene (LAB) prices showed a moderating trend. Starting the year at around ₹132 per kg in Jan 2025. However, by April 2025, a notable downward correction occurred. The decline continued into May 2025 around ₹129 per kg. This sustained reduction aligns with broader market dynamics, including weaker upstream costs, increased regional supply post-turnarounds, and softening buyer sentiment. Despite earlier resistance from suppliers, the growing supply and downward pressure on feedstock prices have begun to weigh on LAB prices in the Indian market. Downward Pressure on Prices: Falling Naphtha Prices: A major feedstock for LAB production, naphtha prices have declined significantly due to weak crude markets and improved refining margins. Negative Market Sentiment: Buyers are cautious, driven by sluggish demand recovery and global economic uncertainties. Plant Restarts in Asia: Key LAB production facilities in Asia have resumed operations post-maintenance, boosting regional supply. Expected LAB Price Trend in India (June–August 2025) Forecast: Indian Linear Alkyl Benzene (LAB) prices are expected to remain under pressure or decline modestly in the next quarter (June to August 2025), Overall, a gradual decline of ₹3–7/kg is expected over the next quarter. Reasons for the Expected Trend: 1. Weak Upstream Cost Support: Benzene and naphtha prices are on a declining trajectory Lower feedstock prices reduce cost push on LAB, encouraging sellers to lower offers. 2. Rising Regional Supply: Post-turnaround plant restarts in China and South Korea have increased LAB availability in the Asian market. Greater availability of feedstock normal paraffins may ease production constraints, further softening prices. 3. Buyer Sentiment & Inventory: Indian buyers remain cautious and price-sensitive, with ample inventory coverage. Expectation of lower offers is delaying procurement, reinforcing downward price pressure. 4. Stable but Soft Downstream LAS Demand: While the LABSA market is steady. Buyers are continuing to seek price reductions, aligning with upstream softness. Fibre2Fashion News Desk (VK)
Time of India
5 days ago
- Time of India
CM announces plan for med college in Bhadrak
Bhubaneswar: CM Mohan Charan Majhi on Monday announced plans to set up a university and a medical college and hospital in Bhadrak district. He made the announcement while inaugurating and laying foundation stones for 13 development projects in Bhadrak's Baliapada worth Rs 275 crore. Tired of too many ads? go ad free now Among the projects announced — a technical textile complex by IOCL and an HMLS polyester production facility by MCPI Pvt Ltd — are expected to generate substantial employment opportunities for locals. "Development in Bhadrak has gained momentum under our administration. In just 120 days, we initiated projects worth over Rs 80,000 crore across the state," the CM said. Majhi also announced plans for the beautification of all martyr sites in Bhadrak, emphasising the district's historical significance. The development package includes infrastructure improvements such as roads, sports facilities, health centres, a library and a memorial park dedicated to Harekrushna Mahatab, Odisha's first CM. Higher education minister Suryabanshi Suraj praised Bhadrak's rich heritage and expressed confidence in the district's development trajectory. "The new projects reflect our govt's commitment to fulfilling the aspirations of Bhadrak's people," he said. Majhi criticised the previous govt for focusing on superficial changes, stating that his govt is committed to bringing about real development. Looking ahead, the CM outlined his vision for a prosperous Odisha by 2036, with Bhadrak playing a crucial role in the transformation. The govt plans to present a detailed progress report to the public on June 12, highlighting achievements in agriculture and allied industries. Officials said Monday's announcement marks a significant step forward in Bhadrak's development journey, promising to enhance both educational opportunities and industrial growth.
