New Delhi: Indian Oil Corporation (IOC) is planning to ramp up its oil refining capacity by 25 percent to meet India’s rising energy needs, said Chairman SM Vaidya at the PSU’s annual general meeting on Friday. “India’s oil demand is likely to surge from 5.4 million barrels per day in 2023 to 8.3 million bpd by 2050. To meet this rise, we aim to increase our refining capacity from 70.25 million tonne per annum to 88 million tonne per annum, while scaling up both convention and non-conventional energy options. Our goal of fulfilling one-eighth or 12.5 percent of India’s energy needs by 2050 aligns with the nation’s energy security objectives and demonstrates our leadership in the sector,” said Vaidya.
With a refining capacity of 70.25 Million Metric Tonnes per Annum (MTPA), Indian Oil accounts for approximately 31 percent of India’s total refining capacity. The PSU currently operates nine refineries.
Indian Oil is targeting to become a USD 1-trillion company by 2047, said the Chairman. “I’d like to share with you that we are embarking on an ambitious journey to become a One Trillion-Dollar Giant by turnover by 2047. This aligns perfectly with India’s vision of a USD 30-trillion economy by the same year. This ambition places us in the elite company of global giants. We will contribute a significant 3 percent share to India’s GDP, supporting the country’s economic transformation,” said Vaidya.
In addition to expanding its refining capacity, Indian Oil is also planning to invest in petrochemical units, that will convert crude oil into value-added chemicals directly, biofuels, gas and clean mobility. “We are also integrating petrochemicals into our refining operations. This oil-to-chemical approach will enrich our value chain, meet rising petrochemical demand, reduce import reliance, and insulate the bottom line from the impacts of oil price fluctuations,” said Vaidya.
Indian Oil is investing over Rs 61,000 crore in setting up a mega petrochemical complex in Paradip, Odisha. “This and the other petrochemical projects will be a game changer for us,” said the Indian Oil Chairman. In 2023-24, the firm commissioned the first phase of naphtha cracker expansion and Px-PTA revamp project in Panipat, Haryana and ethylene glycol plant at Paradip. “These have propelled our petrochemical intensity index to 6.1 percent. By 2030, our aim is to achieve an index of 15 percent and expand the petrochemical capacity to 14 million tonne,” he added.
Indian oil will invest in fossil fuels to address the “unique challenges” posed by India’s growing energy demand and will pursue alternative energy options like green hydrogen, biofuels, solar cooktops and green mobility to achieve its net zero emissions by 2046, said the Chairman. “Our endeavours during the past year vividly illustrate our commitment to achieving operational net-zero by 2046,” Vaidya said. IOC plans to increase its Renewable Energy (RE) capacity to 31 GW by 2030. The PSU is also looking to replace half of its current hydrogen consumption with green by 2030. The company has formed a joint venture with Israeli technology company Phinergy for aluminium-air batteries and with Panasonic Energy of Japan for advanced cell manufacturing of lithium-ion batteries in India.
The Chairman said that Indian Oil is betting big on battery swapping solutions, particularly for the two and three-wheeler segment, with plans to expand this avenue for heavy-duty vehicle applications.
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