Indian Oil Corporation, the country's leading firm on the Fortune 500 list, has drawn up an ambitious Rs 1.75 lakh crore investment plan to expand its production capacity. In the company's latest annual report, IOC chairman Sanjiv Singh said that the refining capacity will be enhanced to 150 million tonnes of petroleum products per annum by 2030 from the current 80.7 million tonnes.
The company currently owns 11 out of the 23 oil refineries in the country.
"As the leading refiner in the country and a dominant player across a diverse portfolio of offerings in energy, IOC is focussing on all emerging opportunities for organic and inorganic growth through vertical integration and strategic diversification, besides pursuing value-creating research areas," Singh said.
"As part of this, projects costing Rs 32,000 crore are in various stages of execution and plans are underway for implementing more projects costing about Rs 1.43 lakh crore," he added.
The current investment cycle includes Rs 16,628 crore in upgrading refineries to produce Euro-VI emission norm compliant petrol and diesel by 2020 as against Euro-IV fuel being produced now.
Singh said plans to nearly double refining capacity by 2030 include greenfield refineries of subsidiary Chennai Petroleum Corp Ltd (CPCL) and the proposed Ratnagiri Refinery & Petrochemicals Ltd (RRPCL), apart from numerous brownfield expansions.
RRPCL is building the world's largest integrated greenfield refinery-cum-petrochemicals complex with a capacity of 60 million tonnes per annum. The project is being executed in partnership with state-owned BPCL and HPCL along with Saudi Aramco and ADNOC of UAE.
Several pipeline projects with a combined capital expenditure of over Rs 20,000 crore are under implementation.
Upon completion, IOC's pipeline network would expand to about 20,000 km in length, he said, adding a 69-km pipeline is also being laid to transport petroleum products to Nepal.
Besides, the company is investing Rs 15,600 crore in expansion of petrochemical projects and another Rs 74,600 crore in raising the capacity of its existing refineries.
Another Rs 36,500 crore worth of projects are in pipeline but have not been approved by the board as yet.