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IOCL to invest Rs 32,946 cr to expand capacity of Panipat refinery

Capital Market 

This capital infusion is expected to increase the capacity of Panipat refinery to 25 MMTPA from 15 MMTPA.

The board of IOCL at its meeting held on 26 February 2021 approved an investment of Rs 32,946 crore to expand the capacity of Panipat Refinery. This capital infusion is expected to increase the capacity of refinery to 25 MMTPA from 15 MMTPA.

The company would also install polypropylene unit and catalytic dewaxing unit in Panipat refinery. The project is expected to be commissioned by September 2024.

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 increased production of petrochemicals and value added specialty products would not only improve the margins but also de-risk the conventional fuel business of the company," IOCL said in a statement.

Shares of IOCL fell 2.87% to close at Rs 98 on Friday (26 February 2021) amid a broader selloff.

IOCL's standalone net profit jumped 110% to Rs 4,916.59 crore on a 1.22% rise in revenue from operations to Rs 1,46,598.83 crore in Q3 FY21 over Q3 FY20.

IOCL's segments include sale of petroleum products, sale of petrochemicals and other businesses. As of 31 December 2020, the Government of India held a 51.50% stake in IOCL while ONGC held a 14.20% stake in the company.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, February 27 2021. 09:00 IST