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IOC To Invest in Bihar Refinery Expansion and Gas Projects

Updated on: Jan 16, 2025, 11:11 AM IST
Indian Oil Corporation (IOC) is investing over ₹21,000 crores to expand the Barauni refinery and establish a city gas distribution network across Bihar.
IOC To Invest in Bihar Refinery Expansion and Gas Projects
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Indian Oil Corporation (IOC), the nation’s leading oil company, continues to play a pivotal role in Bihar’s development by committing over ₹21,000 crore for significant energy projects. These investments include the expansion of the Barauni refinery and the establishment of a city gas distribution (CGD) network, boosting the state’s industrial and energy sectors.

Expanding the Barauni Refinery and Petrochemical Industry

IOC is upgrading the Barauni refinery from its current capacity of 6 million tonnes per annum (MTPA) to 9 MTPA at a cost of ₹16,000 crore. Alongside this expansion, the company is setting up a 2,00,000-tonne polypropylene plant, a key raw material for the plastic industry. Established in 1964 with an initial capacity of 3 MTPA, the Barauni refinery has steadily grown, and this latest project is scheduled for completion by the end of 2025.

This investment marks another milestone in IOC’s commitment to Bihar’s economic development, complementing the ₹9,512 crore spent on reviving the Barauni fertiliser plant, which began urea production in October 2022 under a government initiative to boost domestic urea availability.

Boosting Bihar’s Energy Accessibility Through City Gas Distribution

In addition to refinery expansion, IOC is investing ₹5,600 crore in establishing a city gas distribution network across 27 cities in Bihar. This network aims to supply compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for households, industries, and commercial establishments. These initiatives will promote clean energy usage, reduce reliance on traditional fuels, and foster sustainable urban growth in the state.

IOC Share Performance

As of December 20, 2024, 1:41 PM, the shares of IOC are trading at ₹138.60 per share with a decline of 0.73% from its previous day’s closing price. Over the last month, the stock has seen a surge of 6%. While over the year the stock has surged by 15.38% the stock has a 52-week high and 52-week low of ₹196.80 per share and ₹117.35 per share respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 20, 2024, 3:01 PM IST

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