Indian Oil’s big investment in Bihar, company will spend Rs 21,000 crore

The country’s leading petroleum company Indian Oil Corporation Limited (IOCL) is going to invest Rs 21,000 crore in Bihar.

• This announcement was made by the company’s executive director Suman Kumar at the Bihar Business Connect Investor Conference held in Patna.
• Under this investment, a plan has been made to increase the capacity of Barauni Refinery and develop CNG and PNG network in the state.

Key points of investment

1. Extension of Barauni Refinery:
   • The existing capacity will be increased from 60 lakh tonnes per annum to 90 lakh tonnes per annum.
   • The company will invest Rs 16,000 crore in this project.
   • Petrochemical Plant:
     • A polypropylene plant will also be set up along with the refinery.
     • Polypropylene is the raw material of the plastics industry.
     • The plant is likely to be operational by the end of 2025.
2. CNG and PNG Network:
   • CNG pumps for vehicles will be opened in 27 cities of Bihar.
   • A network will be established to supply piped natural gas (PNG) to homes and industries.
   • An investment of Rs 5,600 crore will be made on this project.

Indian Oil: Oldest investor in Bihar

• Barauni Refinery:
  • Established in 1964, this refinery was Indian Oil’s first major investment in Bihar.
  • The initial capacity was 30 lakh tonnes per annum, which was increased to 60 lakh tonnes.
• Now:
  • There are plans to increase the capacity of the refinery to 9 million tonnes per annum.
  • The capacity of the polypropylene plant will be two lakh tonnes.

Contribution of Indian Oil in the development of Bihar

• industrial development:
  • Supply of raw materials for plastics industry will boost the industrial development of the state.
• Expansion of clean energy:
  • Environment friendly fuel will be supplied through CNG and PNG network.
• Employment Opportunities:
  • The projects will generate direct and indirect employment for thousands of people.