The Indian Oil Corporation (IOC), the leading oil company in the nation, has adjusted the projected cost for expanding the Panipat refinery in Haryana by 10%, now amounting to Rs 36,225 crore. Additionally, the completion deadline has been extended by over a year, with the revised date set for December 2025. The expansion aims to increase the refinery's capacity from 15 million tonnes per year to 25 million tonnes, located approximately 100 kilometers north of New Delhi.

In a filing with the stock exchange, IOC announced the board's approval of the cost revision and schedule extension, specifying the shift from Rs 32,946 crore to Rs 36,225 crore and from September 2024 to December 2025, respectively.

Apart from enhancing the capacity for converting crude oil into refined fuels like petrol, diesel, and ATF, IOC is also establishing a polypropylene unit and a catalytic dewaxing unit. Polypropylene finds applications in packaging, automotive components, textiles, among other industries, while catalytic dewaxing is employed in base oil production.

With nine refineries under its ownership and operation, IOC contributes to nearly two dozen refineries in the country, boasting a total operational capacity of 70.1 million tonnes per annum. The company anticipates a significant boost in its crude oil refining capacity, reaching 87.9 million tonnes per annum by 2026, as a result of approved projects.

IOC's strategic initiatives also include the expansion of olefins and polymers production at the Panipat refining and chemical complex, with a contract awarded to McDermott International Ltd. This expansion project aims to improve operational flexibility, cater to domestic energy demand, and enhance margins by increasing petrochemical and specialty product production.

Furthermore, IOC's phase-two naphtha cracker unit (NCU) expansion project is set to elevate ethylene production capacity by approximately 20%. The company, which already owns 28% of the nation's oil refining capacity and operates 36,792 out of 88,248 petrol pumps in the country, is actively investing in alternative energy sources. This includes the board's approval for the procurement and installation of 4,000 fast electric vehicle chargers, representing an estimated capital investment of Rs 919.78 crore. This move aligns with India's broader transition away from fossil fuels, as the demand for chemicals and petrochemicals within the country is projected to nearly triple by 2040.