Indian Oil Corporation (IOC), has increased its estimates for the cost of expanding the Panipat refinery in Haryana by 10% to Rs 36,225 crore and has pushed back the completion date to December 2025 by more than a year.
Approximately 100 kilometers north of New Delhi, IOC is increasing the capacity of its 15 million tonnes per year refinery to 25 million tonnes.
In a stock exchange filing, the firm said its board has approved "revision in cost of the project for capacity expansion of Panipat Refinery from Rs 32,946 crore to Rs 36,225 crore and revision in completion schedule of the project from September 2024 to December 2025."
Besides expanding the capacity to turn crude oil into value-added fuels such as petrol, diesel and ATF, IOC is also setting up a polypropylene unit and a catalytic dewaxing unit.
Polypropylene is used in packaging, plastic parts for various industries including the automotive industry, and textiles. Catalytic dewaxing is used in base oil production.
IOC owns and operates nine of the country's nearly two-dozen refineries. The total capacity under its operations is 70.1 million tonnes per annum.