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

On a personal note: DIVINE

An underground rapper who grew up on Mumbai streets, Divine spins his music around his environment and poverty. His breakout single, ‘Meri Gully Mein’, along with fellow rapper Naezy caught Bollywood’s attention. The Hindi film ‘Gully Boy’ is inspired by their lives and gr

The role model for an IAS officer

Anil Swarup, an IAS officer of Uttar Pradesh cadre who retired in 2018, is a model bureaucrat who retained his optimism right till the end of service and exemplified dedication and commitment. His excitement at the opportunities that a job in the IAS provided is evident on every page of his new book publis

Reform of the civil services: At home and away

The question of reform of the civil services has been debated extensively at all levels at least over the last five to six decades after independence. Indeed, it was soon perceived that the Indian Administrative Service (IAS) may not be well equipped to deal with the problems of an emerging developing coun

The greatest challenge for any government

Shouting vengeance at all and sundry while wriggling out of holes of our own making seems to be our very special national characteristic. Some recent instances are illustrative of this attribute. A number of business tycoons with thousands of crores of unresolved debts have fled abroad with the government

The mysterious case of CBI’s legality

The Central Bureau of Investigation (CBI) came into existence, based on a Resolution of the home ministry, dated April 1, 1963 – a sheer coincidence that it also happens to be April Fool’s day. Over the past few months, we have seen the CBI live up to its founding day with great zeal, being i

The Evolution of Modi

Gujarat was passing through a turbulent phase in the 1980s. The decade began middle class agitations against new reservation policies, and the caste friction turned communal under the watch of chief minister Madhavsinh Solanki, alienating majority of urban population on both counts. The ground was ripe for

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter