Oil major Indian Oil Corporation is planning to invest about ₹1.75 lakh crore by 2022 for expanding its various businesses.
The investments will help to expand capacity from 65 million tonnes to 100 million tonnes.
B Ashok, Chairman, told media persons on Tuesday that out of the total investment of ₹1.75 lakh crore, the brownfield expansions would be about ₹50,000 crore and it will be primarily carried out at all the company’s refineries.
“We will continue to keep investing for the future and going by the Government of India's emphasis on manufacturing activity there is going to be a higher emphasis on energy. Our industry requires that the company creates capacity ahead of the demand. Our studies show that we need to invest more for capacity creation,” Ashok said.
Delineating the expansion programme, the Chairman said that along with the refinery expansions, the company would be investing ₹15,000 crore in pipeline projects, for product marketing ₹35,000 crore would be required, the petrochemical and oil exploration business will require another ₹65,000 crore, while the gas business will require an infusion of ₹7,000 crore. He said that along with refinery expansions the quality of fuel would also be upgraded, and by 2022, the company wants to produce fuels, which are compliant with BS-6 norms.
Director of Refineries, Sanjiv Singh said that the Paradip refinery would be operational by November 1 and it would run at 60 per cent of its capacity in the first year of operation.
In the second year, the refining capacity would be ramped up 90 per cent and gradually increased to 100 per cent of the capacity.
“Given the complexities of the refinery all the units would not be fully operational simultaneously, it will take some time to stabilise the operations.
The refinery has the capability to process very heavy crude oils.
The approved project cost is ₹34,500 crore and about ₹30,000 crore has already been spent on the project, he said.