Indian Oil receives Board's approval for revised project cost of Barauni Refinery in Bihar
Indian Oil Corporation (IOCL) has got the board's approval to go ahead with the expansion of its Barauni Refinery in Bihar at a revised budget of Rs. 16, 724 instead of the previously quoted Rs 13.779 crore .
This expansion will increase the crude processing capacity from 6.0 million tonne per annum (MTPA) to 9.0 MTPA.
The increase of nearly Rs 2,945 crore is primarily attributed to a rise in the cost of Plant & Machinery.
The revision in project cost is essential to account for inflationary trends in equipment and materials, particularly in the procurement of lant & machinery which forms a significant portion of capital expenditure in such large-scale industrial undertakings.
This capacity enhancement is expected to improve operational efficiency and product availability, enabling the refinery to cater to a broader market while aligning with future fuel quality and emission standards.