Indian Oil Corporation (IOC) will invest Rs 40,000 crore to expand its refining capacity to over 100 million tonnes by 2022 as the nation’s largest oil firm takes the lead to add capacity to meet India’s rising energy needs.
“As we see, (fuel) demand is expected to grow at 3.5-4 per cent CAGR and we need to build capacities to meet that requirement,” IOC Director (Refineries) Sanjiv Singh told PTI. International Energy Agency’s World Energy Outlook projects 4 per cent CAGR growth in India’s fuel demand to 348 mt by 2030, from 184 mt in 2015-16. BP projects demand to be 335 mt while EIA has pegged it at 294 mt, which translates into a CAGR of 3 per cent. IOC will expand its refining capacity to 104.55 mt by 2022 from the current 80.7 mt per annum with an investment of about Rs 40,000 crore, he said.