IOC to invest more than Rs 30000 cr in petrochemical sector

Indian Oil Corporation, with a robust project pipeline is planning to expand its footprint in the petrochemical sector with investments more than Rs 30,000 crore in the anvil.

CNBC-TV18 learns that state-run IOC is scouting for downstream private players to bid for four of their upcoming projects in petrochemical sector.This is the first time that an Indian downstream co is making its entry into the chemical manufacturing space.

Also Read: CCI reviews impeding projects cleared in previous meetings

According to sources, IOC is planning to establish an ethylene oxide purification unit in its Panipat refinery, a Rs 5000 crore greenfield project for acrylic and acetic acid production in Gujarat, and a polymer polypropylene unit in Paradip, making the total cost of these projects more than Rs 30,000 crore.

IOC is in talks with BP (British Petroleum) for a possible JV for its acetic acid plant, sources say. While BP has confirmed that they had signed an MOU for the same, they have refused to divulge details of the investment that both these companies are likely to be making.

Sources indicate that the project size is likely to be more than Rs 5000 crore, with a substantial equity investment. IOC is likely to complete these projects in next four years.