IOC to invest Rs 32,496 crore to expand Panipat refinery capacity

Source: Reuters

State-owned Indian Oil Corporation (IOC) on Friday said it will invest Rs 32,946 crore to expand its oil refinery at Panipat in Haryana to 25 million tonnes per annum capacity and set up chemical units. The expansion will be completed by September 2024, the firm said in a filing to the stock exchanges.

Panipat refinery currently has a capacity to turn 15 million tonnes per annum of crude oil into value-added fuels such as petrol, diesel, and ATF. Besides expanding the oil refining capacity, the company also plans to set up a polypropylene unit and a catalytic dewaxing unit.

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Polypropylene is used in packaging, plastic parts for various industries including the automotive industry, special devices like living hinges, and textiles. Catalytic dewaxing is used in base oil production. Catalytic dewaxing is used in base oil production.

"The capacity expansion would improve the operational flexibility of the refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity," IOC said. The firm, which is the largest oil refiner and fuel marketer in the country, said the increased production of petrochemicals and value-added speciality products would not only improve the margins but also de-risk the conventional fuel business of the company.

IOC owns and operates nine of the country's nearly two-dozen refineries. The total capacity under its operations is 70.1 million tonnes per annum. It also owns 31,232 out of 74,951 petrol pumps in the country.

The board of the company at its meeting on Friday "accorded its approval for capital investment for capacity expansion of Panipat refinery from 15 million tonnes per annum to 25 million tonnes along with the installation of polypropylene unit and a catalytic dewaxing unit at an estimated cost of Rs 32,946 crore," IOC said.