Indian Oil Corporation (IOC) is set to invest over ₹21,000 crore in Bihar to expand its Barauni refinery and develop a city gas distribution (CGD) network. The refinery’s capacity will be increased from the current 6 million tonnes per annum (MTPA) to 9 MTPA, alongside the establishment of a petrochemical plant at a cost of ₹16,000 crore. An additional ₹5,600 crore will be allocated for setting up a CGD network to provide CNG for automobiles and piped cooking gas for households and industries across 27 cities in the state, IOC Executive Director Suman Kumar announced during the Bihar Business Connect 2024 investor summit.

Kumar highlighted that IOC has been a key investor in Bihar since 1964 when the Barauni refinery was established with an initial capacity of 3 MTPA, later expanded to 6 MTPA. The latest upgrade includes a 200,000-tonnes-per-year polypropylene plant, expected to support the state’s growing plastic industry. Both the refinery expansion and the polypropylene plant are scheduled for completion by the end of 2025.

IOC has also made substantial investments in Bihar, including ₹9,512 crore for reviving the Barauni fertilizer plant, which resumed urea production in October 2022 under a government initiative to enhance domestic urea supply.

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This ambitious investment aligns with IOC’s vision to become a USD 1 trillion company by 2047. The company has charted an aggressive growth plan, aiming to invest over ₹2 lakh crore by the end of the decade in refining, petrochemical integration, renewable energy, and infrastructure development. As a part of this vision, IOC is also expanding its refineries in Panipat, Gujarat, and Paradip and advancing green initiatives such as hydrogen mobility, biofuels, solar energy, and electric mobility.

India’s growing energy demand, projected to increase from 5.4 million barrels per day (bpd) in 2023 to 9.3 million bpd by 2040, necessitates expanding the nation’s refining capacity. This capacity is expected to grow from 256.8 MTPA to 450 MTPA over the coming years. The country is also targeting 500 GW of renewable energy capacity by 2030, adding 50 GW annually to meet this goal.

IOC remains committed to its role as the nation’s primary energy provider, aiming to fulfil 12.5% of India’s energy needs by 2050, solidifying its position as a leader in India’s energy transition.

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