The company would install polypropylene unit and catalytic dewaxing unit in Panipat Refinery
Indian Oil posted a more than two-fold rise in its profit for the December quarter
Indian Oil Corporation Limited (IOC) on Friday said that its board has approved an investment of ₹32,946 crore to expand the capacity of Panipat Refinery. This capital infusion is expected to increase the capacity of refinery to 25 MMITPA from 15 MMTPA.
"The capacity expansion would improve the operational flexibility of the Refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity," the Indian Oil Coporation.
The company would also install polypropylene unit and catalytic dewaxing unit in Panipat Refinery, it said in a statement.
"The increased production of petrochemicals and value added specialty products would not only improve the margins but also de-risk the conventional fuel business of the company," the oil major said in BSE filing.
Indian Oil posted a more than two-fold rise in its profit for the December quarter, thanks to large inventory gains. The net profit rose to 4,916.59 crore for the quarter ended on 31 December. The state-run refiner reported ₹2,339.02 crore net profit for the corresponding quarter last year.
The revenue from the operations during the quarter rose to ₹1.47 lakh crore. The company declared interim dividend of ₹7.50/share.
"For Q3 FY 2020-21, the product sales volume, including exports, was 23.033 million tonnes. Refining throughput was 17.860 million tonnes & pipeline throughput was 21.806 million tonnes," the company earlier said.
IOC, along with subsidiary Chennai Petroleum, controls about a third of the country's five million-barrels-per-day (bpd) refining capacity.