India's largest refiner, Indian Oil Corporation Ltd (IOCL), has announced a ₹1 trillion investment in petrochemical projects over the next five to six years. According to reports from Business Standard, the state-run refiner plans to increase its petrochemical intensity from the current 6.5% to 16% of crude oil converted into chemicals. Anuj Jain, director (finance), stated that the company will utilize its annual capex of ₹30,000-40,000 crore starting next year for these petrochemical projects, with an estimated cost of around ₹1 lakh crore over the five to six-year period.
IOCL aims to significantly expand its petrochemical production capacity from the current 4.3 million tonnes per annum (mtpa) to 13 mtpa by 2030. As reported by Business Standard, this expansion aligns with India's broader refining capacity goals, which plans to increase capacity from the current 260 mtpa to more than 300 mtpa. The country aims to become a global refining hub while India's largest refiners, including IOCL, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), are expanding existing plants and setting up greenfield refinery-cum-petrochemical facilities.
According to Jain's statements reported by Business Standard, IOCL is focusing on petrochemicals and renewables as the two sectors that will account for the bulk of their capex. The company has set a target of 18 gigawatts (GW) of renewable power capacity over the next three to four years. Additional investments will be made in pipelines, biogas, sustainable aviation fuel (SAF), green hydrogen and shipping sectors. A joint venture between IOCL and Chennai Petroleum Corporation Ltd (CPCL) is working on reconfiguring an upcoming greenfield refinery in Nagapattinam, Tamil Nadu, to ensure higher petrochemical production.
The greenfield refineries being built in India demonstrate a stronger focus on petrochemical production. As reported by Business Standard, BPCL's upcoming refinery in Andhra Pradesh targets a petrochemical intensity index (PII) of 35%, while HPCL's greenfield refinery in Barmer, Rajasthan, has a PII of 26%. These benchmarks reflect the industry's strategic shift toward higher-value petrochemical production as India ramps up refining capacity to meet domestic demand.
The petrochemical investment comes alongside the Samudra Manthan National Offshore Exploration Scheme, approved on July 31, 2026, with a Phase-I outlay of ₹84,084 crore up to FY 2030-31. This initiative aims to boost India's hydrocarbon exploration and production sector, addressing the country's position as the world's third-largest crude oil consumer with annual imports of nearly USD 144 billion (₹13 lakh crore). The scheme includes ₹2,000 crore for an integrated Oil and Gas Manufacturing and Services Zone to build domestic capabilities and reduce import dependence on energy-intensive manufacturing.
