NEW DELHI: Indian Oil Corporation (IOC) on Friday said that it will invest Rs 32,946 crore in order to expand that capacity of its oil refinery located at Panipat, Haryana to 25 million tonnes per annum. It will also set up several chemical units at the refinery complex.
The expansion will be completed by September 2024. The Panipat refinery currently has the capacity to turn 15 million tonnes of crude oil per annum into value-added fuels such as petrol, diesel, and Aviation Turbine Fuel.
Besides expanding the oil refining capacity, the company also plans to set up a polypropylene unit and a catalytic dewaxing unit, it said in a statement. Polypropylene is used in packaging, plastic parts for various industries, special devices like living hinges, and textiles. Catalytic dewaxing is used in base oil production.
“The capacity expansion would improve the operational flexibility of the refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity,” the company pointed out, adding that the value-added speciality products would not only improve the margins but also de-risk the conventional fuel business of the firm.