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IOC in thick of action as India’s fuel demand explodes
With India’s fuel demand set to take off, state-owned refiner Indian Oil Corporation finds itself in the thick of action. After commissioning its largest refinery at Paradip, IOC has drawn up a Rs 150 billion investment plan to expand capacity of its Gujarat, Barauni, Mathura and Panipat refineries in order to cater to fast-growing fuel demand in the country, according to a senior executive of the company.IOC board has already approved the investment plan.
“We have lined up Rs 150 billion-investment plan for capacity expansion at Gujarat, Barauni, Mathura and Panipat refineries,” said Sanjiv Singh, director-refineries, IOC told UNI. The company has already done capacity expansion at these refineries through debottlenecking route. Meanwhile, as the country gears up to switch over euro IV and VI auto fuel norms from 2017 and 2020 respectively, the state-owned refiner is undertaking technological upgrades at its refineries, which may cost it over Rs 18,000 crore.IOC, along with Bharat Petroleum and Hindustan Petroleum, the two other public sector refiners, is already working to set up India’s largest refinery in Maharashtra with an investment of Rs 1,500 billion.
The proposed refinery will have 60 million ton per annum capacity. To put it in the perspective, India’s total refining capacity is 215 million ton. India’s petroleum demand is projected to more than double to 470-500 million ton per annum by 2040, which would necessitate additional investment of 62 billion dollar, as per official estimates. Luckily for IOC, it has been freed of petroleum subsidy burden just in time to be able to focus on capacity expansion and technological upgrades.”Our cash flows have improved and working capital requirement has come down,” Singh said.
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