IOC to Upgrade its Refineries and Increase Production Capacity to 100 million tonnes

The Indian Oil Corporation (IOC) on 27 November 2012 declared that it would upgrade refineries at Panipat, Mathura and Gujarat. The IOC would make an investment of up to 70,000 crore rupees so that it can double its capacity of refining to 100 million tonnes per year by 2021-2022. The corporation also announced about its plans to develop a new refinery at Gujarat that will have a capacity of 15 million tonnes.

The corporation also announced its plan of setting-up new green field refinery in the West Coast for integration of maximum of its refineries with the with petrochemical complexes, according to the 13th Five Year Plan period. Engineers India Limited is the authorized body selected for submission of the feasibility report for setting up of the refinery plant in the West Coast.

To carry on with the plan of expansion, the corporation would pitch forward for compensation from the Government to recover the sale of products below cost. The Corporation has a total capacity of 54.2 million tonnes per annum from the existing seven refineries in different parts of India and according to the expansion plan; it would increase its capacity to 100 million tonnes per annum in the 12th and 13th Five Year Plans.

The 15 million tonnes refinery at Paradip that is under development stage would be functional by 2013 end and in times to come it will be expanded into a unit with capacity of 20 million tonnes.