Chennai, Jan 23 (IANS): Indian Oil Corporation Ltd (IOC) on Wednesday said it would invest Rs. 16,641 crore in Tamil Nadu for expanding its retail outlet network, upgrading its infrastructure and laying of gas distribution pipelines.

The company signed a Memorandum of Understanding (MoU) with the Tamil Nadu government.

According to IOC, it would invest Rs. 7,941 crore over the next five years.

The company said Rs. 5,100 crore will be invested in expanding its petrol bunk network; Rs. 1,824 crore in upgrading the storage infrastructure and fuel handling facilities; Rs. 214 crore towards liquified petroleum gas (LPG) infrastructure augmentation; and Rs. 803 crore in modernisation and capacity enhancement of its Ennore Lube Complex here.

The company also signed a MoU with the Tamil Nadu government for an investment of Rs. 8,700 crore in two mega gas distribution projects - (a) Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Trichy involving an outlay of Rs. 4,500 crore and (b) City Gas Distribution project in the Salem and Coimbatore geographical areas at an outlay of Rs. 4,200 crore.

"With a contribution of around Rs. 6,800 crore to the state exchequer per annum, the Indian Oil in Tamil Nadu would like to play a stellar role in the State's growth," R. Sitharthan, Executive Director - Tamil Nadu and Puducherry - said.