IOC’s Gujarat refinery to invest ₹1,330 cr to make cleaner fuel

Our Bureau Vadodara | Updated on January 17, 2018 Published on August 26, 2016

To start supplying BS-IV diesel and petrol from January from Koyali refinery

In a bid to achieve 100 per cent Bharat Stage-IV (BS-IV) fuel production, Indian Oil Corporation Ltd (IOCL), will invest around ₹1,330 crore in two phases, to complete the conversion from BS-III to a cleaner fuel by the end of this year.

According to executive director of the refinery, SK Dhar Gupta, the first phase will have investment of ₹930 crore to revamp diesel hydro-treating units, called DHDT and DHDS. In the second phase, the vacuum gas oil hydro-treating unit, called as VGO-HDT will be revamped.

It will require about ₹390 crore at the refinery, located at Koyali near Vadodara.

“We are in the process of implementing the phase one currently. For the ₹390-crore phase II of the investments, a board approval is due. We have set a target to start supplying BS-IV grade fuel to our marketing terminals by January 2017. It would require two-three months for sweeping out the BS-III products from the tanks and pipelines," said Dhar Gupta on Friday. According to him, a total of ₹1,330-crore worth of investment will be made to fully convert to BS-IV.

As per the Centre's Auto Fuel Vision & Policy, all vehicles to have BS-IV fuels from April 2017 onwards. As per the BS-IV norms, the sulphur content in diesel will reduce to 50 ppm from 350 ppm in BS-III norm and petrol will have one-third of sulphur content from 150 ppm to 50 ppm, making the fuel cleaner.

“We have also initiated preparations to jump directly from BS-IV to BS-VI fuel by 2020. For this, we will need additional hydro-treating units for both petrol and diesel. It will need additional 50-55 acres. A preliminary feasibility report has put the initial investment estimate at ₹2,770 crore with variation of +/- 30 per cent," Dhar Gupta said, adding that the project will be completed by September 2019.

For the BS-VI norms, the sulphur content in petrol and diesel will further be brought down to 10 ppm each.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on August 26, 2016
This article is closed for comments.
Please Email the Editor