Indian Oil to Invest Rs 54,000 Crore in Projects; Plans Refinery in Tamil Nadu

7 Jul 2023 , 10:45 AM

According to V C Asokan, Executive Director and State Head (TN & Puducherry), Indian Oil Corporation Limited (IOCL), Chennai, the company has committed to investing Rs 54,000 crore in several projects in Tamil Nadu over the next few years. This includes the construction of a 9 MMTPA grass-root refinery with an estimated cost of Rs 35,580 crore, which will produce polypropylene, petrol, and diesel meeting BS-VI criteria.

Additionally, IOCL plans to build the second-largest integrated lubricants complex in the world at Ammullaivoyal village for Rs 1,398 crore. The company also intends to lay product pipelines (Rs 2,600 crore), gas pipelines including LPG (Rs 2,225 crore), CGD projects (Rs 7,570 crore), open new retail stores, initiate a modernization program (Rs 2,500 crore), and construct a captive POL/LPG jetty at Kamraj.

Asokan stated, ‘Tamil Nadu is a significant market for Indian Oil, and we are continually investing in the state to improve infrastructure, product offerings, and our services.’

IOCL has already begun blending biodiesel with diesel at the Sankari terminal and will soon start in Asanur and Coimbatore as well. Asokan mentioned that they plan to gradually expand biodiesel blending to other locations.

Regarding the use of hydrogen as an alternative fuel, Asokan explained that substantial research is being conducted. However, the challenge lies in making green hydrogen, produced through water electrolysis, economically viable for consumers.

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