Indian Oil to invest 1.8 trillion to expand refineries, new businesses
Oil Corp. Ltd (IOCL) will invest ` 1.8 trillion over the next 5-7 years to expand refining capacity and build new businesses, said Sanjiv Singh, President at the company’s AGM held recently.
Indian Oil is currently undergoing expansion of its Barauni and Gujarat refineries. “Apart from capacity expansion, a largesize single crude unit will be incorporated in place of several small existing units for efficient operations. Expansions of Panipat and Paradip refineries are also under consideration along with various petrochemical options,” Singh said. According to a company statement, Indian Oil has a 20% market share in the petrochemicals segment with the business contributing to almost a quarter of the company’s profitability. The company has so far implemented petrochem- icals projects worth ` 20,800 crore. In addition, a polypropylene unit is being set up at Paradip at an investment of ` 3,150 crore.
“In view of the growing demand for petrochemicals, especially polymers or plastics, Indian Oil has plans to invest about ` 32,000 crore more in petrochemicals projects. These would include revamp of existing capacities; new projects for production of mono ethylene glycol and petcoke gasification at Paradip among others,” Singh’s statement added.