IndianOil plans to invest Rs 4 lakh crore in order to become a "360-degree energy" corporation

26 Aug 2023 , 05:01 AM

According to its chairman Shrikant Madhav Vaidya, Indian Oil Corporation, the largest fuel supplier in India, will spend more than Rs 4 lakh crore in this decade to develop its oil refining and petrochemical operations as well as in energy transition projects as part of a strategy to become a ‘360-degree energy company.’ 

IndianOil would invest a stunning Rs 2.4 lakh crore in projects that will enable it to achieve net-zero carbon emissions from its operations in addition to Rs 1 lakh crore for growing capacity to refine and put crude oil into fuel. A massive petrochemical facility at Paradip in Odisha is expected to cost Rs 60,000 crore to build.

He explained to company shareholders at the annual general meeting that these expenditures will aid the business in continuing to satisfy the increasing energy needs of a quickly growing economy while also moving the business towards the energy transition.

According to Vaidya, the last year saw waves of instability that shook the dynamics of the global energy market, but IOC honoured its promise to provide the country with fuel with unflinching dedication.

‘As India’s energy custodians, your company has crafted a clear roadmap to drive India’s energy destiny,’ he said in his address to shareholders. ‘We are committed to growing our share of India’s energy pie from the current 9% to approximately 1/8th or 12.5 percent by 2050 to fuel the rising energy demand of an ascendant India.’

In order to achieve this, IOC is using a variety of energy sources that will position it ‘as a 360-degree energy company,’ he said. ‘We are in complete agreement with the need to guarantee equitable access to energy and a sustainable transition.’

These expenditures will go towards increasing the capacity of renewable energy sources, developing biofuels, and carbon offsetting in addition to manufacturing green hydrogen to replace the fossil fuel-derived hydrogen now utilised in refineries.

In order to allow electric vehicles to exchange chargeable batteries, the infrastructure and network for EV charging are also part of the country’s energy transformation plans.

And the turbulent geopolitical events of last year caused the industrialised economies to reshuffle their energy baskets, leaning more towards conventional fuels. ‘Let me assure you that we are strengthening the traditional energy avenues, as we shape the green energy vision, to ensure India’s energy security,’ he said.

‘We are investing over Rs 1 lakh crore for expanding your company’s refining capacity by about 33% to reach almost 107 million tonnes per annum soon,’ he declared.

At Nagapattinam in Tamil Nadu, a new oil refinery with an annual capacity of 9 million tonnes is part of the project.

He said that the IOC Board had approved Stage 1 of the construction of the Paradip petrochemical complex in Odisha, which is expected to cost more than Rs 61,000 crore. This will be the location where IOC makes its single largest investment.

The business is working with Snam of Italy to investigate the viability of upgrading the current natural gas pipes for the transportation of hydrogen.

The company is also increasing the number of branded fuels it offers. ‘Our 100 octane petrol XP100 is now being offered at over 200 retail outlets, 95 octane petrol XP95 is available at over 10,300 outlets, and the green diesel XtraGreen is being retailed at more than 5,600 outlets,’ Vaidya stated.

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