Indian Oil plans ₹1.66 trn investment over 5 years for business growth

The investment will expand the company's core operations in oil refining and fuel marketing, along with ventures in petrochemicals, natural gas, and renewable energy

Indian Oil Corporation (IOC), the country's largest oil company, plans to invest ₹1.66 trillion over the next five years to expand its core operations in oil refining and fuel marketing, along with ventures in petrochemicals, natural gas, and renewable energy, Chairman Arvinder Singh Sahney said at the company’s annual shareholder meeting on Saturday.

 

Expansion in refining and pipelines

 

IOC plans to raise its crude refining capacity from 80.75 million tonnes a year to 98.4 million tonnes by 2028, with major upgrades at Panipat, Gujarat and Barauni. To strengthen supply, its pipeline network will be expanded to 22,000 km through 21 ongoing projects, including new storage facilities in Nepal.

 

 

Push into petrochemicals and retail

 

The company is scaling up petrochemicals, aiming to triple capacity from 4.3 million tonnes to over 13 million tonnes by 2030, with a focus on specialty chemicals to cut imports. Its 40,000 plus fuel station network will grow further, adding EV chargers, battery-swapping points, and CNG/LNG dispensing units.

 

Clean energy and net-zero target

 

IOC has earmarked ₹2.5 trillion for energy transition projects, aiming for net zero operational emissions by 2046. Investments will include green hydrogen, sustainable aviation fuel, and a sharp rise in renewable energy capacity from 1 GW to 18 GW within three years.

 

Growth in natural gas and other businesses

 

The natural gas segment grew 20 per cent to 7.9 million tonnes annually, with operations now spanning 49 geographical areas across 21 states, covering 21 per cent of India’s population. Beyond energy, IOC has expanded into explosives, cryogenics, and shipping infrastructure to tap new opportunities.

 

Navigating global headwinds

 

Sahney noted that geopolitical tensions, from the Russia-Ukraine conflict to unrest in the Middle East and trade barriers in the US, created fresh challenges for global energy flows. Despite this, IOC achieved record sales volumes above 100 million tonnes in 2024-25, supported by its vast retail network, pipelines, and LPG distribution reaching 15 crore households.

 

"All of this is backed by strict capital discipline, ensuring that every investment creates long-term value and keeps IndianOil future-ready," Sahney said.