State-owned petroleum company IndianOil has signed a memorandum of understanding (MoU) with the Indian government in order to commission projects worth INR300 billion during fiscal 2009-10.

To ensure optimum utilization of resources and increased operational efficiency in both the refineries and marketing divisions, substantial cost reduction at the operational level is a major thrust area of the MoU, according to IndianOil.

According to the company, its efforts to usher in cleaner fuels continue to remain in focus with ongoing projects like the residue upgradation project at Koyali refinery in Gujarat and petrol quality upgradation projects at the Panipat, Mathura, Barauni, Guwahati and Digboi refineries.

The MoU also lays emphasis on physical parameters like crude oil throughput, energy factor and project milestones. A case-specific life-cycle assessment study of jatropha bio-diesel has been assigned to IndianOil’s R&D center, which would help compare the impact of jatropha bio-diesel on the environment vis-a-vis petroleum diesel for various transportation modes.

The oil comopany said that new parameters included in the MoU relate to Corporate Social Responsibility (CSR) initiatives, e-procurement and setting up of a network and infrastructure for polymer marketing. The Corporation also plans to commission more than 200 Kisan Seva Kendra (special format retail outlets) as one-stop shops for rural customers.