IOC to invest Rs 7,812 crore for expansion

Indian Oil Corp (IOC), the nation's largest oil firm, today said it will invest Rs 7,812 crore in fuel quality upgradation projects at two key refineries as well as other expansion projects.

The Board of state-owned company last week approved an investment of Rs 1,843 crore in upgrading the 13.7 million tons Koyali refinery in Gujarat to produce Euro-IV complaint petrol an diesel.

Another, Rs 1,327 crore will be spent on similar fuel quality upgradation project at Barauni refinery in Bihar, IOC said.

The Board on February 13 also approved "setting up of ethylene glycol project along with associated facilities at Paradip (in Odisha) at an estimated project cost of Rs 3,752 crore," IOC said.

The project would help in consolidating the glycol business of IOC by producing low cost mon-ethylene glycol based on refinery gas. The Board approved Rs 108 crore for carrying of detailed feasibility report of the project.

IOC will invest another Rs 890 crore in construction of a dedicated naphtha pipeline from Jaipur to Panipat along with augmentation of Koyali-Sanganer product pipeline.

"The pipeline would help in meeting the naphtha requirement of IOC's naphtha cracker complex at Panipat," the company said.

The Board sanctioned Rs 170 crore for pre-project activities and preparation of detailed feasibility report for implementation of project for producing Euro-IV of BS-IV complaint petrol and diesel at Gujarat refinery.

For Barauni refinery upgrade, Rs 112 crore have been sanctioned for carrying out a detailed feasibility report.

"This would enable availability of BS-IV products as per the Government of India roadmap for implementation of Euro-IV complaint petrol and diesel all over the country effective April 1, 2017," IOC said.