Business

IOC to invest Rs1.75Lcr to boost production

The company currently owns and operates 11 out of the 23 oil refineries in the country.

New Delhi: Indian Oil Corp, the nation’s largest oil firm, plans to invest Rs 1.75 lakh crore to nearly double refinery capacity, boost petrochemical production, expand gas business and lay new pipelines to become a vertically integrated company, its Chairman Sanjiv Singh said.

It plans to raise capacity to turn crude oil into fuels like petrol and diesel to 150 million tonnes per annum by 2030 from the current 80.7 million tonnes. The company currently owns and operates 11 out of the 23 oil refineries in the country.

As part of this, projects costing Rs 32,000 crore are in various stages of execution and plans are underway for implementing more projects costing about Rs 1.43 lakh crore, he said. Singh said plans to nearly double refining capacity by 2030 include greenfield refineries of subsidiary Chennai Petroleum Corp Ltd (CPCL) and the proposed Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), apart from numerous brownfield expansions.

RRPCL is building the world’s largest integrated greenfield refinery-cum-petrochemicals complex with a capacity of 60 million tonnes per annum. The project is being executed in partnership with state-owned BPCL and HPCL along with Saudi Aramco and ADNOC of UAE.

Currently, its investment cycle includes Rs 16,628 crore in upgrading refineries to produce Euro-VI emission norm compliant petrol and diesel by 2020 as against Euro-IV fuel being produced now. Besides, the company is investing Rs 15,600 crore in expansion of petrochemical projects and another Rs 74,600 crore in raising the capacity of its existing refineries.

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