A leading oil company has announced a Rs 21,000 crore investment to expand its refinery in Bihar. Additionally, the company is inviting bids for 338 kWp solar power projects at various terminals across Uttar Pradesh, aiming to boost its renewable energy efforts while advancing its infrastructure in the region.
Price Movement
In Friday’s trading session, the share price of Indian Oil Corporation Ltd reached an intra-day high of Rs.141.65 per share, rising 1.4 percent from its previous close of Rs.139.62 per share. However, the stock declined later to Rs.141.36 each.
What happened
Indian Oil Corporation (IOC) is set to invest over Rs 21,000 crore in expanding its Barauni refinery in Bihar. This investment will see the refinery’s capacity increase from 6 million tonnes to 9 million tonnes per annum, along with the addition of a new petrochemical plant. The estimated cost for the refinery expansion is around Rs 16,000 crore.
Furthermore, IOC will invest an additional Rs 5,600 crore to develop a city gas distribution network across 27 cities in Bihar. This project will provide CNG for vehicles and piped cooking gas to households and industries, further strengthening IOC’s presence in the region.
IOC is also focusing on renewable energy by inviting bids for 338 kWp solar power projects at its terminals in Uttar Pradesh. The tender covers the engineering, procurement, and construction of solar power plants at three locations in Najibabad, Banthra, and Meerut, with capacities of 68 kWp, 115 kWp, and 155 kWp, respectively.
The estimated value of the project is Rs 2.47 crore, inclusive of GST. The bid submission process will begin on December 25, 2024, and will close on January 1, 2025, following a pre-bid meeting and clarifications deadline of December 20, 2024.
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International Footprints
IOCL has expanded its footprint internationally with subsidiaries in countries such as Sri Lanka (Lanka IOC), Mauritius (IndianOil Mauritius Ltd.), and various regions across the Middle East, Europe, and North America.
This global presence aligns with its strategy to expand downstream operations while continuing to strengthen its position in the domestic market.
Financial Performance
Turning towards the financials of the company, Indian Oil Corporation Ltd reported Q2 FY25 revenue of Rs.1,74,976 crore, reduced by 2.3 percent from Rs.1,79,246 crore in the same quarter last year. Profit After Tax (PAT) decreased substantially by 97 percent to a net loss of Rs.449 crore, from a net profit of Rs.13,713 crore in the same period.
Company Profile
Indian Oil Corporation Limited (IOCL), the largest integrated oil and gas company in India, is fully owned by the Government of India. Founded in 1964, IOCL engages in the entire hydrocarbon value chain, encompassing refining, pipeline transportation, marketing, and the exploration of petroleum and natural gas.
Written by – Siddesh S Raskar
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