Indian Oil Corporation (IOC), the nation’s leading oil firm, has announced plans to invest more than Rs 21,000 crore in Bihar. This investment will focus on expanding the Barauni refinery and establishing a city gas distribution (CGD) network across the state. Executive Director Suman Kumar made the announcement during the Bihar Business Connect 2024 investor summit.
Barauni Refinery Expansion and Petrochemical Integration
The capacity of the Barauni refinery will be increased from 6 million tonnes per annum (MTPA) to 9 MTPA at an estimated cost of Rs 16,000 crore. Additionally, a petrochemical plant with a production capacity of 200,000 tonnes of polypropylene annually is being constructed. Polypropylene, a key raw material for the plastic industry, will enhance the refinery’s integration with downstream sectors. The project is expected to be operational by the end of 2025.
City Gas Distribution Network to Boost Clean Energy Access
IOC will invest Rs 5,600 crore to establish a CGD network in 27 districts of Bihar. This network will enable the retailing of compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households and industries. The initiative aligns with the company’s strategy to expand its footprint in the clean energy sector.
Revival of Barauni Fertilizer Plant
Previously, IOC and its partners spent Rs 9,512 crore to revive the Barauni fertilizer plant, which resumed urea production in October 2022. This initiative was part of a government scheme to restart closed urea units and boost domestic production.
Ambitious Goals for a $1 Trillion Future
IOC has outlined plans to become a $1 trillion company by 2047. As part of this vision, the company aims to invest over Rs 2 lakh crore this decade. These investments will focus on refining capacity expansion, petrochemical integration, renewable energy assets, and allied infrastructure.
Other Refinery Expansion Projects Across India
In addition to the Barauni project, IOC is increasing the capacity of its Panipat refinery in Haryana from 15 MTPA to 25 MTPA and its Gujarat refinery from 13.7 MTPA to 18 MTPA. Petrochemical production units are being integrated into these refineries. While the first phase of expansions at Panipat and Paradip (Odisha) is complete, the Gujarat expansion is slated for commissioning in 2024-25.
Commitment to Green Energy Initiatives
IOC actively pursues green energy initiatives such as hydrogen mobility, biofuels, electric mobility, and solar cooktops. The company also aims to reduce its water footprint, showcasing its commitment to sustainable energy solutions.
Meeting India’s Growing Energy Demands
India’s oil demand, currently at 5.4 million barrels per day (bpd), is expected to grow to 9.3 million bpd by 2040. To meet this rising demand, the country’s refining capacity will need to increase from the present 256.8 MTPA to 450 MTPA.
Scaling Renewable Energy Capacity
India is also ramping up its renewable energy efforts, with plans to add 50 GW of capacity annually. The goal is to achieve 500 GW of installed renewable capacity by 2030, contributing significantly to the global transition to clean energy.
Conclusion
Indian Oil Corporation’s strategic investments in Bihar and across India reflect its commitment to enhancing the nation’s energy infrastructure while driving the transition to sustainable energy solutions. With its ambitious targets and diverse initiatives, IOC is set to play a pivotal role in meeting India’s energy needs and economic growth aspirations.
