Indian Oil Share Price Surges Over 3%; Approves JV with M11 Energy Transition for ₹1,063.60 Crore SAF Project

Indian Oil Corporation Ltd (IOCL) has approved a joint venture with M11 Energy Transition Pvt. Ltd. for setting up a Sustainable Aviation Fuel (SAF) project at Paradip, Odisha.  

The proposed project will be developed at an estimated cost of ₹1,063.60 crore, with a variation margin of ±30%, according to the company’s regulatory filing dated 18 May 2026.  

50:50 Venture Structure 

The proposed entity will be formed as a 50:50 joint venture between Indian Oil and M11 Energy Transition. The project is subject to approvals from NITI Aayog and the Department of Investment and Public Asset Management (DIPAM).  

The facility will manufacture 100 KTPA (kilo tonnes per annum) of HEFA-based Sustainable Aviation Fuel. HEFA, or Hydroprocessed Esters and Fatty Acids, is a technology used to produce aviation fuel from renewable feedstocks such as used cooking oil and vegetable oils. 

Paradip Chosen for New Fuel Project 

The project will come up at Paradip, where Indian Oil already operates a refinery and petrochemical complex. The location is considered important due to existing refining infrastructure and port connectivity. 

The proposed SAF unit is to expand into lower-emission fuel segments alongside conventional refining operations. 

Aviation Sector Looking at Cleaner Fuels 

Demand for Sustainable Aviation Fuel has been increasing globally as airlines and fuel producers prepare for tighter emission reduction targets.  

SAF is being explored as an alternative to conventional aviation turbine fuel due to its lower lifecycle carbon emissions. 

India has also been examining the use of alternative fuels in aviation as part of energy transition and decarbonisation plans. 

Indian Oil Corporation Share Price Performance  

As of May 19, 2026, 12:14 pm, Indian Oil Corporation Ltd share price was trading at ₹135.80, a 3.03% increase from the previous closing price. 

Conclusion 

Indian Oil and M11 Energy Transition plan to develop the SAF project through a 50:50 joint venture structure at Paradip. The proposal remains subject to approvals from NITI Aayog and DIPAM. 

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