IOC to invest Rs 23,000 cr in 5 yrs

State-owned Indian Oil Corp plans to invest more than Rs 23,000 crore (Rs 230 billion) over the next five years in adding new capacities at the existing refineries and building a new refinery at Paradip in Orissa.

IOC, which currently has seven refineries with combined installed capacity of 41.35 million tonnes per annum, would have an installed capacity of 66.85 million tonnes per annum after the investment, a senior company official said.

The company will have a combined refining capacity of 47.35 million tonnes after Panipat refinery expansion from 6 to 12 million tonnes is completed this fiscal.

IOC is India's largest refining firm.

"Plans have been drawn for further expansion of the Panipat refinery from 12 to 15 million tonnes, Haldia refinery from 6 to 7.5 million tonnes and installation of a grassroots refinery with petrochemicals complex at Paradip," he said.

While doubling of Panipat refinery capacity entailed an investment of Rs 4,165 crore (Rs 41.65 billion), an additional Rs 1,011 crore (Rs 10.11 billion) would be required for raising its capacity further to 15 million tonnes. The expansion would be completed in 33 months.

Another Rs 1,600 crore (Rs 16 billion) would be invested in Haldia refinery expansion by March 2009, the official said adding IOC had commissioned Engineers India Ltd and Shell Global for prepration of a detailed feasibility report of Rs 20,700 crore (Rs 207 billion) Paradip refinery.

The official said a potential for expansion exists at Mathura refinery from 8 to 11 million tonnes, at Gujarat from 13.7 to 18 million tonnes and at Panipat from 15 to 21 million tonnes.