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Indian Oil Corporation Ltd (IOCL) on Monday said the oil-marketing company was planning to spend nearly $4 billion in capital expenditure in FY26, up from $3.71 billion or ₹31,000 crore of planned capex in FY25.
In an investor presentation, IOCL also said it aimed to complete the commissioning of two key refinery expansion projects, including the 10 million tonnes (mt) per annum capacity expansion at the Panipat refinery, and allied projects by December.
Approved in 2021, the refinery expansion in Haryana’s Panipat is set to increase its 15 million metric tonnes per annum (mmtpa) capacity to 25 mmtpa, at a total approved cost of $4.5 billion. Nearly 84 per cent of the project has been completed at Panipat, which is IOCL’s largest, alongside the one at Paradip in Odisha. The company's ongoing project to set up a para-xylene (PXA) and purified terephthalic acid (PTA) plant at the Paradip refinery is slated to be completed by April 2026, with a total cost of $1.63 billion. Nearly 89 per cent of the work is completed.
A new pipeline carrying crude from Mundra port to the Panipat refinery is also scheduled for completion by December. Also on the anvil is IOCL’s petrochemical and lube integration project at the Gujarat refinery in Vadodara, expected to be completed by December. More than 80 per cent completed, the project envisages raising capacity to 18 mmtpa, up from 13.7 mmtpa currently, at a total cost of $2.23 billion.
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On a smaller scale, the 3 mmtpa expansion at Barauni refinery in Bihar will be completed by August next year, the company leadership said.
IOCL said almost 50 per cent of its FY26 capex is earmarked for refinery upgradation projects, followed by marketing (26 per cent), petrochemicals (8 per cent), and pipelines (7 per cent), with the rest going towards equity investments in joint ventures and gas.
“In the first nine months of FY25, the company has incurred capex of ₹28,000 crore with an estimated capex outlay of ₹35,000 crore for FY25. It is expected to incur capex of ₹30,000-35,000 crore per annum at a consolidated level over the next two to three years,” a recent report by CareEdge had pointed out.
