FOCUS ON CORE, EYE ON GREEN PLAY

STATE-OWNED OIL MARKETER ADDS TO ITS PETROCHEMICALS PORTFOLIO, INCREASES REFINING CAPACITY TO BOOST PROFITS, REDUCES INDIA'S DEPENDENCE ON IMPORTS.

- ANUP JAYARAM

#3 LARGEST PSU OMC
INDIAN OIL CORP.
Arvinder Singh Sahney, chairman, IOCL
TOTAL INCOME (FY24) ₹7,80,509 cr

INDIA’S LARGEST state-owned oil marketing company, Indian Oil Corp. Ltd. (IOCL), has set its sights on becoming a $1 trillion company by 2047. That fits in with the Union government’s vision to transform India into a developed nation—Viksit Bharat—with a $30 trillion economy by then.

But all said, it’s an ambitious target for the $110 billion oil major. To achieve its target, IOCL has drawn up an aggressive capital expansion plan—to invest more than ₹31,000 crore in FY25 (it has already spent ₹8,500 crore in the first quarter itself). The company has also earmarked investments of more than ₹2 lakh crore over a longer timeframe to expand refining capacity, petrochemical integration, allied infrastructure and renewable energy assets.

“Our focus has been on projects that enhance energy accessibility, affordability, sustainability and security. We are committed to meeting the country’s growing demand for energy,” says Arvinder Singh Sahney, chairman, IOCL. As part of the plan, the oil marketer is looking to expand its refining capacity from 80.75 million metric tonnes per annum (MMTPA) to 107 MMTPA. This includes setting up Chennai Petroleum’s upcoming 9-MMTPA Cauvery Basin refinery at Nagapattinam, Tamil Nadu, and expanding its Panipat (15 MMTPA to 25 MMTPA), Gujarat (13.7 MMTPA to 18 MMTPA) and Barauni (6 MMTPA to 9 MMTPA) refineries.