Despite being in tussle with the state government of Odisha over sanctioning of fiscal incentives to Paradip crude oil refinery, IOCL (Indian Oil Corporation Ltd) is planning to expand the capacity of the facility.
According to a report in Business Standard, the oil major is planning to up capacity from 15 million tonne per annum (mtpa) currently to 20 mtpa and beyond.
It quoted Sanjiv Singh, director (refineries) of IOCL, as saying: “We are looking into the expansion of the refinery. The oil industry works on a narrow margin. We may go for expansion (of the Paradip refinery) to 20 million or beyond.”
He added: We intend an investment of Rs 4,500 crore to upgrade the Paradip refinery to roll out petroleum products that would comply with BS-VI emission norms.” The expansion is aimed at generating more cash flow and improving operating margins.
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