Indian Oil allocates big budget to upgrade Paradip refinery

GN Bureau | January 11, 2016


#Paradip refinery   #refinery   #Indian Oil   #PSU  


Indian Oil Corp aims to invest Rs 40 billion ($600 million) in upgrading its newest refinery in Paradip, Odisha,  after the government decided to fast track the introduction of road vehicle fuels which are compliant with Euro VI emission standards to April 2020. The refinery is IOC’s most advanced plant that can process the heaviest and dirtiest crude oil available at a cheaper rate.

The 300,000 barrels per day refinery, which was commissioned last year, was designed to produce Euro IV and Euro V-compliant fuels. But the decision to bring forward the introduction of Euro VI fuels to combat rising pollution requires installation of some new units and upgrades of existing ones.

IOC needs to add facilities like Isomerisation, Diesel Hydrotreater and a Hydrogen units to produce Euro VI compliant fuels at the Paradip refinery.

G S Singh, executive director for technical operations at the refinery, told reporters that the IOC would commission a reformer, and vacuum gas oil hydrotreater this month, and an alkylation unit next month.

The refinery is expected to run at up to 60 percent capacity in the current fiscal year to March 31 as some units have yet to come online. The crude processing capacity could rise to 80 percent once other new units are commissioned, Singh said.

It will operate at full capacity from the fiscal year 2017/18, when its gross refining margins could go up significantly to $12-$14 per barrel, Singh said.

India’s fuel demand is rising and the International Energy Agency has said the country could become the most important driver of energy demand growth in the world in the years to come.

Paradip refinery will mainly cater for markets in eastern and southern India, currently fed by fuel sourced from other local refiners and imports.

Meanwhile, Indian Oil has tied up with trucking and logistics start up Fortigo, which will help it address issues related to ferrying of its fuel by small truck owners. Fortigo is funded by various venture capitalists including Nandan Nilenkani.

Fortigo will "provide technology-based solutions to truck owners for managing their inventories and planning their operations and journeys effectively to save time and reduce transportation costs", IOC said in a statement.

A large part of fuels like petrol, diesel and LPG produced by IOC are moved from its refineries to consumption centres in trucks.

Comments

 

Other News

AAI plans development of Lucknow, Deoghar, Rajkot and Allahabad airports

The airports at Lucknow, Deoghar, Rajkot and Allahabad would be spruced up by Airports Authority of India to improve and develop infrastructure to meet growing traffic demands. The authority plans to construct a new integrated passenger terminal building at Chaudhary Charan Singh Internation

Housing for all: A realisable dream

The Indian constitution states that “the state shall strive to promote the welfare of the people, protecting as effectively as it may a social order in which justice, social, economic and political for all.” It is on these basic values that India continues to endeavour to provide its people bas

Why judicial reforms matter

Two path-breaking judgments by the Supreme Court on privacy and triple talaq were a reminder of how much we have begun to rely on the judiciary to make sense of a conflicted world. Seventy years after Independence, India’s judiciary has many accomplishments to its credit. A large judicial infrastruct

Sail supplies 80% steel for Sardar Sarovar project

Maharatna enterprise Steel Authority of India Limited (SAIL) has said that it supplied 80 percent steel required for construction of the Sardar Sarovar Project unveiled by prime minister Narendra Modi.    SAIL supplied around 85,000 tonnes of steel for the entire Sardar

Why university and college teachers are unhappy across the country

College and university teachers all across the country seem too much worried about the policy shift with respect to their pay and regulations from centre to states. Therefore, they may be gearing up for an indefinite movement in the coming days, a situation that was built only during the previous regime of

Sardar Sarovar saga reaches closure, finally

After a long wait of almost half a century, filled with more twists and turns than the river Narmada’s, the Sardar Sarovar project is finally complete.   Prime minister Narendra Modi dedicated the multipurpose project to the nation on Sunday, which also happened to be h



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter