Indian Oil to Invest Rs 1 Trillion in Petrochemicals
OIL & GAS

Indian Oil to Invest Rs 1 Trillion in Petrochemicals

Indian Oil Corporation Ltd plans to invest about Rs 1 trillion (Rs 1 tn) in petrochemical projects over the next five to six years, the company's management said on an investor call. The investment is intended to raise petrochemical intensity, defined as the share of crude oil converted into chemicals, from the current six point five per cent to 16 per cent. Management said the move forms part of a broader strategy that also includes expansion in renewables, pipelines, green hydrogen and sustainable aviation fuel capacity.

Anuj Jain, director (finance), said the company generally has capital expenditure of Rs 300 billion (Rs 300 bn) to Rs 400 billion (Rs 400 bn) every year and that from next year several petrochemical projects will absorb the bulk of this spending. He indicated that the estimated cost of the planned projects is around Rs 1 trillion and that the initiatives are at various stages of approval. The company therefore expects capital allocation to shift noticeably towards chemical capacity over the coming years.

IOCL aims to increase its petrochemical production capacity from the current four point three million tonnes per annum (4.3 mn tpa) to 13 mn tpa by 2030. The planned scale up reflects a wider industry trend as refiners seek higher value from crude processing while domestic demand for plastics and chemicals grows. Executives framed the capacity targets as achievable through brownfield expansions and new greenfield units to be commissioned across existing hubs.

The company also flagged parallel investments in cleaner fuels and feedstock flexibility to support the petrochemical push and to meet emerging regulatory and market requirements. Management highlighted that project timelines and funding will be calibrated against approvals and market conditions. Investors will monitor progress as allocations are finalised and specific project sanctions are announced. Analysts and investors will track delivery timelines and cost controls closely.

Indian Oil Corporation Ltd plans to invest about Rs 1 trillion (Rs 1 tn) in petrochemical projects over the next five to six years, the company's management said on an investor call. The investment is intended to raise petrochemical intensity, defined as the share of crude oil converted into chemicals, from the current six point five per cent to 16 per cent. Management said the move forms part of a broader strategy that also includes expansion in renewables, pipelines, green hydrogen and sustainable aviation fuel capacity. Anuj Jain, director (finance), said the company generally has capital expenditure of Rs 300 billion (Rs 300 bn) to Rs 400 billion (Rs 400 bn) every year and that from next year several petrochemical projects will absorb the bulk of this spending. He indicated that the estimated cost of the planned projects is around Rs 1 trillion and that the initiatives are at various stages of approval. The company therefore expects capital allocation to shift noticeably towards chemical capacity over the coming years. IOCL aims to increase its petrochemical production capacity from the current four point three million tonnes per annum (4.3 mn tpa) to 13 mn tpa by 2030. The planned scale up reflects a wider industry trend as refiners seek higher value from crude processing while domestic demand for plastics and chemicals grows. Executives framed the capacity targets as achievable through brownfield expansions and new greenfield units to be commissioned across existing hubs. The company also flagged parallel investments in cleaner fuels and feedstock flexibility to support the petrochemical push and to meet emerging regulatory and market requirements. Management highlighted that project timelines and funding will be calibrated against approvals and market conditions. Investors will monitor progress as allocations are finalised and specific project sanctions are announced. Analysts and investors will track delivery timelines and cost controls closely.

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