Refinery Expansion: Indian Oil to invest ₹17,825 cr in Gujarat refinery
Indian Oil said it will invest ₹17,825 crore in raising the capacity of its Gujarat refinery as well as setting up a petrochemical plant at the unit as part of plans for upscaling petchem business to protect margins
Indian Oil Corporation (IOC), the country’s top oil firm, on Tuesday said it will put ₹17,825 crore in raising the limit of its Gujarat treatment facility just as setting up a petrochemical plant at the unit as a major aspect of plans for upscaling petchem business to secure edges.
In an administrative documenting, IOC said its board at a gathering on September 21 “concurred endorsement for usage of petrochemical and lube mix venture at Gujarat treatment facility at an expected expense of ₹17,825 crore”.
The venture conceives raising the limit of the Vadodara treatment facility in Gujarat from 13.7 million tons for each annum to 18 million tons and building a 0.5 million tons per year polypropylene (PP) plant and a 2,35,000 ton a year Lube Oil Base Stock (LOBS) unit.
“The project would be a building block for the production of niche chemicals in future with a potential to increase petrochemical and speciality products integration index on incremental crude oil throughput which would enhance the corporate margins of IOC,” it said.
After the company’s annual general meeting on Monday, IOC Chairman Shrikant Madhav Vaidya told reporters that IOC is planning to raise petrochemical manufacturing capacity and is looking at diversifying into the textile business.
The Gujarat refinery project is part of IOC’s plans to boost petrochemical capacity by more than 70 per cent over the next decade, from 3.2 million tonnes a year currently, Vaidya said.
“Petrochemical production is a lucrative opportunity for energy companies in India as the per-capita consumption still remains very low,” he had said adding that it will raise margins and hedge volatility in the oil market.
IOC is at present executing an ethylene glycol venture at its Paradip processing plant in Odisha, just as a paraxylene/decontaminated terephthalic corrosive (PX/PTA) plant at the site. An acrylics/oxo-liquor venture at the Gujarat treatment facility and limit development of the naphtha wafer and PX/PTA plant at its Panipat complex in Haryana are likewise being executed.
The firm is contributing ₹28,869 crore on these activities, he had said.
IOC, which possesses 33% of India’s 249.9 million tons for each annum refining limit and 29,831 petroleum siphons out of 71,046 retail outlets in the nation, additionally plans to use its petrochemical activities to venture into materials as it hopes to enhance tasks, Vaidya said.
The organization, he stated, is now the second-biggest part in petrochemicals in the nation and later on, it would zero in on passage into new portions like polyester fiber yarn, polyester staple fiber, and polybutadiene elastic.
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