• The order is valued at Rs 600 crore and the mechanical completion is scheduled within 40 months

• The Board of Directors of Indian Oil had recently accorded its approval to Panipat Refinery expansion plan on February 26

New Delhi: Indian Oil Corporation (IOC) has awarded the consultancy and management contract for the Panipat Refinery Expansion project to Engineers India Ltd (EIL), EIL said in a regulatory filing to the stock exchanges on Tuesday. The order is valued at Rs 600 crore and the mechanical completion is scheduled within 40 months, said EIL. "Indian Oil Corporation Limited (IOCL) has awarded the Project for execution of Consultancy for Overall Project Management and EPCM Services (Phase II) for Capacity Expansion of Panipat Refinery from 15 MMTPA to 25 MMTPA (P-25 Project) to Engineers India Limited (EIL). The total awarded order value is around Rs. 600 crores with a total project schedule of 40 months for Mechanical Completion," said the document.

Indian Oil Panipat Refinery Expansion project

The Board of Directors of Indian Oil had recently accorded its approval to Panipat Refinery expansion plan on February 26. The project will entail an investment of Rs 32,946 crore and will involve expansion of the capacity of IOC's Panipat Refinery from the current 15 MMTPA to 25 MMTPA. The project will also involve the installation of a Polypropylene Unit and Catalytic Dewaxing Unit.

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The expansion plan will increase the capacity of Indian Oil's Panipat Refinery from 300,000 barrels per day to 500,000 barrels per day. And the project is expected to be commissioned by September 2024.

Expansion will help IOC enhance its petrochemical intensity

The Panipat Refinery expansion project would not only improve the ability of the state-run refiner to meet the domestic fuel demand but will also enhance its petrochemical intensity which will allow the company to de-risk its fuel business from the vagaries of the oil market. "The capacity expansion would improve the operational flexibility of the Refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity. The increased production of petrochemicals and value added specialty products would not only improve the margins but also de-risk the conventional fuel business of the company," Indian Oil had said on February 26.

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