IOC shares in focus as co plans to invest over Rs 21,000 cr in Bihar refinery expansion
Indian Oil Corporation (IOC) are in focus after a senior executive of the company stated that it will invest over Rs 21,000 crore to expand its Barauni refinery in Bihar and establish a city gas distribution network across the state.
IOC is upgrading the Barauni refinery from a capacity of 6 million tonnes per annum (mtpa) to 9 mtpa, along with a petrochemical plant, at an estimated cost of Rs 16,000 crore.
Additionally, the company will invest Rs 5,600 crore to set up a network for retailing CNG to vehicles and piped cooking gas to households and industries in 27 cities of Bihar, according to Suman Kumar, IOC’s Executive Director, speaking at the Bihar Business Connect 2024 investor summit.
IOC, which established the Barauni refinery in 1964, initially with a capacity of 3 mtpa, has since expanded it to 6 mtpa and is now increasing it to 9 mtpa. The company is also constructing a polypropylene plant, which will produce 200,000 tonnes of polypropylene, a key raw material for the plastic industry. The refinery expansion and polypropylene plant are expected to be operational by the end of 2025.
In addition, IOC is investing Rs 5,600 crore to build a city gas distribution (CGD) network in 27 districts of Bihar. Previously, IOC, in collaboration with partners, invested Rs 9,512 crore to revive the Barauni fertiliser plant, which began urea production in October 2022 as part of a government initiative to revive closed urea plants and boost domestic urea production.
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