IOCL Boosts Barauni: ₹16,724 Crore Expansion on Track

Indian Oil Corporation (IOCL) has secured board approval for the expansion of its Barauni Refinery in Bihar, aimed at increasing its crude processing capacity from 6.0 million tonnes per annum (MTPA) to 9.0 MTPA.

Originally sanctioned at a cost of ₹13,779 crore, the project’s revised budget now stands at ₹16,724 crore — an increase of approximately ₹2,945 crore. This cost escalation is mainly due to a rise in expenses related to Plant & Machinery, reflecting inflationary trends and higher procurement costs for key equipment and materials.

The expansion aligns with IOCL’s long-term strategy to boost refining capacity in response to India’s growing energy demand. Enhancing the refinery’s capacity is expected to improve operational efficiency, ensure better product availability, and help meet future fuel quality and emission standards.

Beyond its industrial objectives, the project is also set to contribute to the socio-economic growth of the region. It will generate both direct and indirect employment and strengthen the industrial ecosystem in Bihar, supporting broader regional development goals.

News by Rahul Yelligetti.