Shares of Indian Oil Corporation Ltd (IOC) rallied over 3 percent in early trade on Monday after the downstream company said it will expand Panipat refinery capacity to 25 million tonnes per year from 15 million tonnes per year earlier.
In an exchange filing on Friday, the state-owned refiner said that its board approved capital investment for capacity expansion of Panipat Refinery from 15 MMTPA to 25 MMTPA along with the installation of Polypropylene Unit and Catalytic Dewaxing Unit at an estimated cost of Rs 32,946 crore.
The project is expected to be commissioned by September 2024, it added.
“The capacity expansion would improve the operational flexibility of the Refinery to meet the domestic energy demand and would also enhance the petrochemicals intensity. The increased prcduction of petrochemicals and value added specialty products would not only improve the margins but also de-risk the conventional fuel business of the company,” IOC said.
At 10:10 am, the shares of IOC traded 2.70 percent higher at Rs 100.65 apiece on the BSE as compared to a 1.47 percent gain on the benchmark Sensex.