Indian Oil Corporation Limited (IOCL), one of India’s largest oil company, has announced an investment of over ₹21,000 crore to expand its Barauni refinery in Bihar and establish a city gas distribution (CGD) network across the state.
The strategic move aims to enhance the company’s refining capacity and meet the growing energy demand in the region.
The announcement was made by IOCL Executive Director Suman Kumar.
Expansion of Barauni Refinery and Petrochemical Plant
As part of the ongoing expansion, IOCL is increasing the capacity of its Barauni refinery from six million tons per annum (MTPA) to 9 MTPA.
The upgrade, which includes a new petrochemical plant, will cost approximately ₹16,000 crore.
The petrochemical unit will produce 2,00,000 tons of polypropylene, a vital raw material for the plastic industry.
The expansion is expected to be completed by the end of 2025.
Establishment of City Gas Distribution Network
In addition to the refinery upgrade, IOCL investment of ₹5,600 crore to establish a city gas distribution network across 27 districts of Bihar.
The network will enable the retailing of compressed natural gas (CNG) to automobiles and piped cooking gas to households and industries.
The initiative is part of IOCL’s broader commitment to meet the growing energy needs of the state and promote cleaner fuels.
Revitalizing the Barauni Fertilizer Plant
IOCL has also contributed to the revival of the Barauni fertilizer plant, investing ₹9,512 crore in collaboration with its partners.
The plant started urea production in October 2022 as part of a government initiative to boost domestic urea production and ensure its availability.
The move supports the country’s agricultural sector by increasing locally produced fertilizer supply.
IOCL’s Vision for Future Growth
These investments are in line with IOCL’s ambitious goal of becoming a $1 trillion company by 2047.
The company has committed to investing over ₹2 lakh crore as part of its long-term strategy. This investment will span the next decade. It will be used to expand the company’s refining capacity, petrochemical production, and renewable energy assets.
IOCL aims to contribute 12.5% of India’s energy needs by 2050, positioning itself as the nation’s primary energy provider.
Refining Capacity Expansion Across India
Beyond Bihar, IOCL is also expanding its other refineries.
The Panipat refinery will increase its capacity from 15 million tons to 25 million tons per year. The Gujarat refinery will also expand its capacity, from 13.7 million tons to 18 million tons.
IOCL’s plan to integrate its refineries with lube and petrochemical production units aligns with the expansions.
The first phase of petrochemical expansions at Panipat and Paradip (Odisha) is already complete. They expect to commission the expansion at the Gujarat refinery by 2024-25.
Green Initiatives and Renewable Energy Plans
In addition to traditional energy sources, IOCL is also focusing on green initiatives.
The company is exploring hydrogen mobility, biofuels, electric mobility, solar cooktops, and strategies to minimize its water footprint.
As reported by money.rediff.com, the efforts are part of IOCL’s commitment to sustainability and reducing its environmental impact.
