Indian Oil Corp. Ltd. plans to invest more than Rs 740 crore to increased the capacity of India's oldest oil refinery at Digboi in Assam.
The board of the state-run oil marketing company has approved raising the refining capacity of the northeastern refinery to 1 million tonnes/year from 0.65 million tonnes at an estimated cost of Rs 740.20 crore, according to an exchange notification
The project, which will improve the profitability of the Digboi refinery, is expected to be commissioned by October 2025.
Commissioned on Dec. 11, 1901, Digboi is India's old refinery in continuous operation. Previously owned and operated by the Assam Oil Co. Ltd. or Burmah Oil Co., it came into the Indian Oil fold by an Act of Parliament on Oct. 14, 1981, and became the Assam oil division of the company.
According to the Indian Oil website, the refinery processes waxy crude extracted from oil fields operating in areas near Digboi. It also started processing crude condensate in 2018. Its current product portfolio include liquified petroleum gas, petrol and diesel, fuel oil and sulphur.
Indian Oil is the country's largest oil refining and fuel marketing company. It owns and operates 10 oil refineries with a cumulative capacity of 80.55 million tonnes per annum, or 32% of India's total oil refining capacity of 250 million tonnes.
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