Indian Oil Corporation to invest ₹1.66L crore in energy expansion
What's the story
India's largest oil company, Indian Oil Corporation (IOC), has announced a massive investment of ₹1.66 lakh crore over the next five years. The move is aimed at expanding its core operations in oil refining and fuel marketing, along with ventures in petrochemicals, natural gas, and renewable energy. The company's chairman, Arvinder Singh Sahney, revealed the plans during the annual shareholder meeting on Saturday.
Expansion plans
Major expansions in refining and pipeline network
IOC is planning to ramp up its crude oil refining capacity from 80.75 million tons per annum (MTPA) to 98.4 MTPA by 2028. This will be done with major expansions at Panipat, Gujarat, and Barauni. To enhance its infrastructure and support its operations, IOC is also expanding its pipeline network, the largest in the country, to 22,000km with 21 projects under execution, including extensions and new storage facilities in Nepal.
Diversification strategy
Petrochemicals next growth engine
Along with refining and pipelines, IOC is also focusing on petrochemicals as its next growth engine. The company plans to increase its capacity from the current 4.3 MTPA to over 13 MTPA by 2030. A major part of this expansion will be in specialty chemicals to reduce import dependence and improve margins.
Green initiatives
Investments in energy transition
IOC is also investing in energy transition to achieve net-zero operational emissions by 2046. The company is investing in green hydrogen production, Sustainable Aviation Fuel (SAF), and expanding its renewable electricity portfolio from 1GW to 18GW within three years. Sahney said, "Looking ahead, your company has committed around ₹1.66 lakh crore over the next five years with a sharp focus on petrochemicals, natural gas, and renewable energy."
Business growth
IOC is also focusing on per-pump throughput
IOC is also focusing on per-pump throughput, non-fuel retail (NFR), and high-potential segments like bitumen and bunkering. The company is seeding future-ready platforms like LNG bunkering, coastal infrastructure, integrated shipping, and data transmission services. These ventures will leverage the firm's adjacencies to capture emerging opportunities in a rapidly evolving energy ecosystem.