IOCL to invest Rs 17,825 crore in Gujarat refinery for petrochemical, lube integration projects

Country's largest oil marketing company India Oil Corporation has said that it will invest Rs 17,825 crore to implement Petrochemical and Lube Integration Project at Indian Oil's Gujarat Refinery. It said, the project will increase the capacity of Gujarat Refinery to 18 MMTPA from existing 13.7 MMTPA.

In its BSE filing, the company said, "The Board of Indian Oil at its meeting held on 21st September 2020, has accorded approval for implementation of Petrochemical and Lube Integration Project at Indian Oil's Gujarat Refinery at an estimated cost of Rs. 17,825 crore." It added, "The project will not only increase the capacity of Gujarat Refinery from 13.7 MMTPA to 18 MMTPA but would also result in integration to petrochemicals with the production of 500 KTPA Polypropylene."

Production of Lube Oil Base Stock (LOBS) of 235 KTA is also proposed. The project would be a building block for the production of niche chemicals in future with a potential to increase petrochemical and speciality products integration index on incremental crude oil throughput which would enhance the Corporate margins of Indian Oil.

Besides at the 61st Annual General Meeting (AGM) of Indian Oil, its Chairman Shrikant M Vaidya gave an overview of the performance of the Company for the financial year 2019-20 and the future scenario of the Industry as well as the Company. The Company Secretary read the extracts of Auditor's Report along with qualification of Secretarial Auditor and management's response thereon.