IOC unveils refineries upgrade plan

State-owned Indian Oil Corporation (IOC) plans to invest more than Rs 23,000 crore over the next five years in adding new capacities at its existing refineries and building a new refinery at Paradip in Orissa.

IOC, which currently has seven refineries with combined installed capacity of 41.35 million tonnes per annum, would have an installed capacity of 66.85 million tonnes per annum after the investment, a company executive said.

The company will have a combined refining capacity of 47.35 million tonnes after Panipat refinery expansion from 6 to 12 million tonnes is completed this fiscal.

"Plans have been drawn for further expansion of the Panipat refinery from 12 to 15 million tonnes, Haldia refinery from 6 to 7.5 million tonnes and installation of a grassroots refinery at Paradip," he said.

Refinery capacity entailed an investment of Rs 4,165 crore, an additional Rs 1,011 crore would be required for raising its capacity further to 15 million tonnes. The expansion would be completed in 33 months.

Another Rs 1,600 crore would be invested in haldia refinery expansion by march 2009, the official said adding ioc had commissioned engineers india ltd and shell global for prepration of a detailed feasibility report of Rs 20,700 crore Paradip refinery.

The official said a potential for expansion exists at mathura refinery from 8 to 11 million tonnes, at Gujarat from 13.7 to 18 million tonnes and at Panipat from 15 to 21 million tonnes.

"These plans will be firmed up after detailed study considering projection of domestic demand growth."