Oil Is Not Enough

The No. 1 company on the Fortune India 500 list for the ninth time running, IOC, led by chairman Sanjiv Singh, is transforming itself into a ‘complete energy’ firm by investing heavily in alternative fuels as challenges from e-vehicles and tighter emission norms grow.

- Ashish Gupta

EVERY MORNING, Sanjiv Singh starts his day with a cup of green tea and a 10 km walk, followed by a quick breakfast. The Indian Oil Corporation (IOC) chairman doesn’t let anything come between him and his exercise regimen because that is what prepares him for a demanding day at work. The 58-year-old IIT-Roorkee graduate shows the same diligence in preparing IOC, the No. 1 company on the Fortune India 500 list for the ninth year running, for the future. Anticipating stricter emission standards, and a strong government focus on electric vehicles and alternative fuels, Singh is investing heavily in green technologies such as hydrogen fuel cells to make IOC a complete energy company. In an interview with Fortune India, Singh talks about his plans for transforming the company. Edited excerpts:

What is the future of fossil fuels in India? Many experts believe that by 2030, electric mobility will become a way of life, resulting in reduced demand for gasoline and diesel.

Let us look at mobility from the customer’s point of view. They want it to be economical and reliable. When we started driving two-wheelers, they were all two-stroke engines, giving a mileage of 35-40 km per litre; 40 km per litre was a dream. Today, the fuel economy has changed the game. Cars are extremely reliable. If you look at electric vehicles (EVs), technically they are extremely advanced. But there are issues, too. Let us look beyond emissions... look at the complete lifecycle—how are we generating electricity, manufacturing batteries, and how frequently are batteries being replaced and disposed of. EVs provide a wonderful alternative but how aggressively they come to India depends on each and every aspect that I mentioned. Infrastructure is also an issue for them.