Indian Oil to pump Rs 1.66 trillion into refining, petrochemicals and green energy push

Refining, renewables, and risk: Inside IOC’s Rs 1.66 trillion expansion drive

Indian Oil Corporation (IOC), the country’s largest oil refiner and fuel retailer, is gearing up for one of its most ambitious expansion drives yet. Chairman Arvinder Singh Sahney told shareholders on Saturday that the company will invest Rs 1.66 trillion over the next five years to scale up its traditional oil operations while pushing aggressively into petrochemicals, natural gas, and renewable energy.

Refining power: capacity to touch 98.4 mt

At the heart of IOC’s plan is a major upgrade of its refining business. The company will raise its crude oil refining capacity from the current 80.75 million tonnes per year to 98.4 million tonnes by 2028.

Expansion projects are underway at Panipat, Gujarat, and Barauni refineries.
The pipeline network will be scaled up to 22,000 km, supported by 21 ongoing projects.
New storage facilities, including in Nepal, will strengthen cross-border energy supply lines.

Petrochemicals push to cut imports

IOC is also turning its attention to petrochemicals, aiming to triple its output from 4.3 million tonnes today to more than 13 million tonnes by 2030. The focus will be on specialty chemicals, an area where India remains import-dependent.

Its retail presence of over 40,000 fuel stations will evolve into multi-energy hubs, integrating:

EV chargers and battery-swapping stations
CNG and LNG dispensing units
Expanded convenience services for India’s growing mobility market

Clean energy and the 2046 net-zero goal

A central pillar of IOC’s strategy is the energy transition. The company has earmarked ₹2.5 trillion for clean energy projects as it targets net zero operational emissions by 2046.

Key areas of focus include:

Expanding renewable power capacity from 1 GW to 18 GW within three years
Green hydrogen production facilities
Sustainable aviation fuel projects
Sahney stressed that this diversification will “future-proof IndianOil” while balancing national energy needs.

Natural gas and new business verticals

IOC’s natural gas segment is seeing rapid growth, with volumes rising 20 percent to 7.9 million tonnes annually. The business now spans:

49 geographical areas across 21 states
Coverage of 21 percent of India’s population

Beyond energy, IOC is expanding into allied businesses such as explosives, cryogenics, and shipping infrastructure, signalling its intent to tap into wider industrial opportunities.

Global headwinds, local resilience

Sahney acknowledged that global turbulence, from the Russia-Ukraine war to Middle East unrest and US trade barriers, continues to roil energy flows. Yet IOC posted record sales of more than 100 million tonnes in FY25, supported by:

A vast retail network reaching every corner of India
Strong pipeline infrastructure
LPG distribution to over 15 crore households

“All of this is backed by strict capital discipline,” Sahney said, “ensuring every investment delivers long-term value.”

(With inputs from press release and PTI)