Indian Oil Corporation (IOC) will invest Rs 10,000 crore over a period of 4 years to make Bharat Stage VI or Euro-6 standard fuel in its Haldia refinery. CK Tiwari, executive director in Indian Oil’s Haldia refinery, said the Supreme Court has directed the use of Bharat stage VI grade fuel in all the vehicles by 2021. So, IndianOil will have to upgrade it quality of production.
“The investment process has already started and we hope to employ our entire budgeted capital by 2021,” Tiwari said. While the entire investment would be divided into phases, the number of phases would be decided in view of work progress. The first-phase investment would go in setting up a hydro cracker unit crucial for making superior grade fuel, Tiwari said, adding that the unit would augment production capacity from 7.5 million tonne per annum to 8 mtpa.
Hydro cracking plants process wide variety of feed stocks of different characteristics and produce broad range of products. They also maximise production of high-quality diesel and gasoline. Originally started as a 2.5-mtpa refinery Haldia, the fourth in line of IOCL’s 10 refineries, produces fuel and lube-based stock and has increased its capacity to 7.5 mtpa over a period of 42 years. The refinery had set up its first hydro cracker unit in 2008 to produce Euro–3 and Euro–4 complaint diesel.
According to a senior official, while the refinery got a government sanction of Rs 2,889 crore in 2006 to make its first hydro cracker unit, it had spent less than Rs 2,000 crore in setting up the unit by 2008. The refinery capacity was augmented to 7.5 mtpa from 6 mtpa during that period, the official added.