Indian Oil Corporation (IOC) has announced a major investment of Rs. 24,000 crore in Gujarat, aimed at expanding its Vadodara refinery and establishing advanced petrochemical facilities. This strategic initiative is part of IOC’s broader plan to bolster India’s self-reliance in the petrochemical sector while advancing clean energy solutions.
Refinery and Petrochemical Expansion
Under the proposed plan, the capacity of IOC’s Gujarat refinery will be increased from the current 13.7 million metric tonnes per annum (MMTPA) to 18 MMTPA. The expansion is intended to meet the growing demand for refined petroleum products in the domestic market.
One of the flagship developments is the LuPech Project, a Petrochemical and Lube Integration facility designed to manufacture key import substitutes like Lube Oil Base Stock (LOBS) and polypropylene. This move will significantly reduce India’s dependency on imported petrochemical products.
In addition, IOC will set up an Acrylics and Oxo Alcohol Project at its Dumad and Gujarat refinery locations. This facility will produce Butyl Acrylate, an essential raw material used in paints, adhesives, textile chemicals, and coatings.
Another pioneering development is the establishment of India’s first hydrogen dispensing station at the Gujarat refinery. This will facilitate the rollout of hydrogen-powered buses operating between Vadodara and Kevadia, promoting green mobility.
Supporting infrastructure will also be upgraded, including the development of the Koyali-Ahmednagar-Solapur pipeline, a tank truck loading facility for Linear Alkyl Benzene (LAB), and a new flare system at the refinery to enhance operational safety and efficiency.
The comprehensive investment package is expected to generate around 125 million person-hours of employment during the construction phase. IOC estimates that approximately 25,000 direct and indirect job opportunities will be created, thereby contributing significantly to Gujarat’s economic development. Moreover, the availability of affordable raw materials will further catalyze industrial growth across the state.
Strategic Impact
This investment is aligned with IOC’s strategy to diversify into high-margin petrochemical and specialty product segments. It also enhances the flexibility of the refinery to adapt to evolving supply-demand dynamics and strengthens downstream integration with petrochemical units.
The MoU for these projects was signed in the presence of Gujarat Chief Minister Mr. Vijaybhai Rupani and Union Minister of Petroleum and Natural Gas & Steel Mr. Dharmendra Pradhan. Speaking on the occasion, IOC Chairman Mr. S.M. Vaidya noted that the projects would not only reinforce India’s energy security but also contribute to the nation’s sustainable development goals.
