Indian Oil Corporation Ltd (IOC) plans to invest over Rs 43,500 crore over the next five years, for capacity expansion, de-bottlenecking and quality upgradation.
Of that amount Rs 30,000 crore will be invested in downstream integration as the company forays into the petrochemicals business. Most of the investment will be funded through internal accruals and borrowings as our financial health is quite good. The PSU controls 10 of India's 19 refineries and accounts for 40.4% share of national refining capacity. It has 60.2 mln mtpa refining capacity. Apart from its current Panipat and Koyali petrochemicals projects, IOC plans to develop world class petrochemicals production centres at Paradip, Haldia and Chennai.
The 15 2 mln mtpa grassroots refinery coming up at Paradip will be integrated with petrochemicals units for paraxylene, propylene and styrene with an investment of over Rs 26,000 crore. Rs 14,500 crore naptha cracker project in Panipat, Haryana is scheduled to be commissioned in 2009. IOC has commissioned a 5,53,000 ton Paraxylene/Purified Theraptic Acid plant at Panipat.
Other major projects are the residue upgradation plan at the Gujarat refinery (Rs 2,000 crore), a hydrocracker unit at Haldia (Rs 3,000 crore), modernisation and capacity addition of refineries at Haldia, Panipat, Mathura, Barauni, Guwahati and Digboi to comply with Euro III and IV norms (at a cost of Rs 4,500 crore).
The expansion of refineries will help IOC augment its refining capacity to 80 MMTPA from the current 60.2 MMTPA by 2011-12.