IOC Invests Rs 1.66 Lakh Cr for Growth

New Delhi, Aug 30 (PTI) Indian Oil Corporation (IOC), the country's largest oil firm, plans to invest Rs 1.66 lakh crore over the next five years to expand its core operations in oil refining and fuel marketing, along with ventures in petrochemicals, natural gas, and renewable energy, its chairman Arvinder Singh Sahney said on Saturday.

The firm is scaling up its capacity to refine crude oil into fuels like petrol and diesel from the current 80.75 million tonnes per annum to 98.4 million tonnes by 2028, with major expansions at Panipat, Gujarat, and Barauni, he said at the company's annual shareholder meeting.

To move this energy swiftly and sustainably, IOC is expanding its pipeline network - the country's most extensive - to 22,000 km with 21 projects under execution. These include pipeline extensions and new storage facilities in Nepal.

Alongside refining and pipelines, IOC is targeting petrochemicals as the next growth engine, expanding capacity from the current 4.3 million tonnes per annum to over 13 million tonnes capacity by 2030, with a sharp focus on specialty chemicals to reduce import dependence and enhance margins.

The firm will continue to expand its 40,000-plus fuel retailing network, adding new-age sources such as EV chargers, battery-swapping stations and CNG and LNG dispensing outlets.

Alongside core business, IOC is investing Rs 2.5 lakh crore in energy transition that will help it achieve net zero operational emissions by 2046, he said, adding the firm is investing in green hydrogen production, Sustainable Aviation Fuel (SAF), and expanding renewable electricity portfolio from 1 GW to 18 GW within three years.

"Looking ahead, your company has committed around Rs 1.66 lakh crore over the next five years, with a sharp focus on petrochemicals, natural gas, and renewable energy - balancing India's rising auto-fuel demand with the global energy transition," he said.

Giving details of initiatives to expand operational base, he said IOC is sharpening focus on per-pump throughput, non-fuel retail (NFR) and high-potential segments such as bitumen and bunkering. At the same time, it is seeding future-ready platforms such as LNG bunkering, coastal infrastructure, integrated shipping, and data transmission services - ventures that leverage the firm's adjacencies to capture emerging opportunities in a rapidly evolving energy ecosystem.

With a market leadership share of 45 per cent in the LPG, IOC has launched BIS-certified Chhotu Master - a compact 5 kg cylinder and cooktop combo - with the first 'Chhotu Shopee' in Ahmedabad.

For industrial customers, innovative offerings like XtraBoost-high fuel-efficient nano-additized AutoLPG and Propane Plus - advanced propane with cleaner combustion and higher heat output - deliver cleaner, more efficient fuels.

While its Servo lubricants have expanded its global footprint to 45 countries, IOC retained market leadership with a 54.5 per cent share in aviation fuel, commissioning new aviation fuel stations at Srinagar and Rewa.

Its natural gas business surged 20 per cent to 7.9 million tonnes per annum, supported by new sourcing agreements with global majors. Its city gas distribution footprint has spread to 49 geographical areas across 21 states, covering 21 per cent of India's population.

Beyond energy, in the explosives business, a new plant at Neyveli has been commissioned, with greenfield projects in Telangana and Maharashtra underway. In Cryogenics, IOC has secured government contracts alongside export orders, while a new unit at Dindori will further strengthen domestic manufacturing capacity.

"All of this is backed by strict capital discipline, ensuring that every investment creates long-term value and keeps IndianOil future-ready," he said.

He said the year gone by reminded us that energy is never just about markets and molecules - it is shaped by the pulse of geopolitics.

"The Russia-Ukraine conflict, now in its third year, continued to cast a long shadow on global stability. As the months progressed, new fault lines emerged in the Middle East. Disruptions in the Red Sea and heightened tensions around the Strait of Hormuz unsettled vital energy corridors, forcing global trade to recalibrate. Towards the close of the year, tariff hikes announced by the United States brought fresh headwinds, shaking investor confidence and adding a new layer of uncertainty to global flows."

Against this backdrop, oil and gas markets remained under pressure, with the accelerating pace of the energy transition amplifying volatility.

IOC, he said, delivered a resilient performance during 2024-25. Sales volumes crossed the historic 100 million tonne mark, 20,000 km pipeline network ensured seamless movement of hydrocarbons, over 40,000 fuel stations energised over 3.2 crore customers every day and Indane LPG fueled 15 crore kitchens.

Alongside, IOC retained a strong presence in petrochemicals, natural gas, and exploration and production, further reinforcing its diversified energy footprint.