Home >Industry >Energy >IOC to spend 28,500 crore in FY22 to expand operations

Mumbai: Indian Oil Corporation Ltd (IOCL) will spend 28,500 crore this fiscal in expanding its operations, against 27,000 crores it spent last FY, said two officials from the company.

Of this, IOCL will spend around 5,000 crore on refineries, 5,000 crore on pipelines, 1,600 crore on marketing, 2,580 crore on petrochemicals, 1,500 crore on city gas distribution business, and 1,000 crore on other joint venture projects. A few small projects costing below 25 crore would make up for the rest of the investment.

IOCL which is bullish on the natural gas distribution business has initiated marketing of city gas business from 11 plants through 18 retail outlets spread over five states with a total sale in 2021 exceeding 962 metric tonne.

Presently, IOCL has a portfolio of 230 megawatts of renewable energy consisting of 168 wind and 65 megawatt of solar. For electric vehicles, it now has 257 charging stations and 29 battery swapping stations throughout the country.

IOCL is also working on aluminum-air battery technology with a foreign company with plans to put up a manufacturing facility in India, the official said.

With vaccinations being rolled out across the globe, the company is expecting improvement in the refining margin environment going forward, which should help recovery in crack spreads, it said.

Refining companies are already seeing some improvement in the crack spreads of petrol and diesel. Also, with covid-19 cases coming down and the economies opening up across the world, companies believe demand world over will see an increase which will also benefit Indian refiners.

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