The Indian Oil Corp demands heavy discounts to buy up to 2 million tonnes of crude from Cairn India.

The director of the company, B N Bankapur said that the Rajasthan output utility of Cairn India is producing heavy and waxy crude oil. The company has to pay additional amount to refine it, which would not be economical for IOC without good amount of discount.

The crude produced at the Rajasthan utility can not be transported through ordinary pipelines. It is susceptible to turn in solid at the normal temperature. It can be transported only by blended with normal crud,e which results in transportation of 10 percent crude through the pipeline. The company’s refineries at Panipat and Koyali refinery can get only 0.6 million tons and 0.8 million tons respectively which would not be economical without any discount.

The price would be decided by the government and both companies are not negotiating by now.

It conforms to the Euro II quality standards and needs not any hydro treatment. IOC intends to raise the quantity of high sulphur crude for processing at its refineries to reduce the oil import. The company has also written to the Ministry of Environment and Forest for clearance to expand its Mathura plant.