About
Indian Oil Corporation Ltd
Indian Oil Corporation (IOC) is India's flagship Maharatna national oil company with business interests straddling entire hydrocarbon value chain from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, petrochemicals, gas marketing, alternative energy sources and globalization of downstream operations.
The Company's operations include refineries, pipelines and marketing. Their portfolio of brands includes Indane LPGas, SERVO lubricants, XTRAPREMIUM petrol and XTRAMILE diesel and Propel Petrochemicals. In exploration and production, Indian Oil's domestic portfolio includes 11 oil and gas blocks and two coal bed methane blocks while the overseas portfolio consists of 10 blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela.
Indian Oil Corporation Ltd was established in the year 1959 as Indian Oil Company Ltd. In the year 1964, Indian Refineries Ltd merged with Indian Oil Corporation Ltd. Indian Oil Blending Ltd a wholly owned subsidiary was merged with Indian Oil on May 2006. The company transferred their entire equity holding in Indian Strategic Petroleum Reserves Ltd (ISPRL) to the Oil Industry Development Board, a government body functioning under the Ministry of Petroleum & Natural Gas. Consequently, ISPRL ceased to be a wholly owned subsidiary in May 2006.
The company formed one subsidiary company, namely IOC Middle East FZE, in Jebel Ali Free Trade Zone Dubai, with the objective of marketing lubricants and other petroleum products in Middle East, Africa and CIS regions. In June 2006, they incorporated a joint venture company namely, Indo-Cat Pvt Ltd with Intercat.Inc of USA for manufacture and marketing of FCC catalysts and additives.
In the year 2007, the company received plenty of awards, Oil Industry Safety Directorate Awards, 'Most Admired Retailer of the Year' award, 'CIO 100 Award 2007', SAP ACE - Awards for Customer Excellence and the only petroleum company as 'The Most Trusted Brand' in ET's Brand Equity's annual survey. The SERVO acquires prestigious MAN Global approvals, Indian Oil's R&D Centre gets special recognition for Bioremediation and also SERVO secures entry into NSF White Book - H1 Category during the period. The company won Retailer of the Year - Rural Impact Award and their XtraPower won Loyalty Summit Award during the year 2008.
In January 2008, the company and Hindustan Unilever Ltd (HUL) signed an MoU for setting up Kwality Walls Kiosks at select Indian Oil petrol stations across the country. Also, the company entered into an MoU with Transparency International India (TII) for implementing an Integrity Pact Programme focused on enhancing transparency in their business transactions, contracts and procurement processes. In April 2008, the company launched 'LNG at Doorstep' facility at the Pen unit of H&R Johnson, the facility, first of their kind in the country, which are primarily aimed at catering to the needs of Liquefied Natural Gas (LNG) customers who are not located on the main natural gas pipelines. The company was conferred with the 'Maharatna' status by the Government of India which provides enhanced autonomy and larger flexibility for its operation.
During the year 2009-10, the company commissioned 238 new retail outlets and 414 Kisan Seva Kendra (KSK) outlets taking their total tally to 18,643. The company's Indane LPG brand earned the coveted status of 'Superbrand'. On the lines of KSK, the Rajiv Gandhi Grameen LPG Vitarak Yojana was launched to penetrate rural markets.
During the year, the company was granted the Petroleum Exploration License for one of the two Type-S blocks in Cambay basin for which it is the operator. Upon getting the license, exploration activities were initiated in the block. The company was awarded a project for the development, extraction, upgradation and marketing of heavy oil in Carabobo heavy oil region of Venezuela in consortium with Repsol, Petronas, ONGC Videsh Ltd. and Oil India Ltd.
During the year 2010-11, the company enrolled about 46.8 lakh new Indane LPG customers and commissioned 245 new Indane distributors taking their total to 618.3 lakh and 5,311 respectively. The LPG Bottling capacity was enhanced to 5,518 TMTPA with capacity addition of 326 TMT. In order to provide LPG to rural India, the company commissioned 145 distributors under the Rajiv Gandhi Gramin LPG Vitaran Yojana under the auspices of Ministry of Petroleum & Natural Gas. As a part of their CSR activity, 10,052 new connections were released to BPL families.
During the year, the company formed a joint venture company was formed with Nuclear Power Corporation of India Ltd (NPCIL) for setting up Nuclear power plants. In July 2010, the company commissioned their first gas pipeline between Dadri and Panipat and thus they commenced gas supplies to Panipat Refinery. The company in consortium with GSPC, HPCL and BPCL won gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal, Mehsana to Bhatinda and Bhatinda to Jammu and Srinagar.
In 2012 Oil India Limited (OIL) and Indian Oil Corporation (IOCL) jointly acquired a stake in Carrizo's liquid rich shale assets in the Niobrara basin in Colorado, USA. Indian Oil (IOC) also launched a new engine oil SERVO 4T SYNTH with advanced synthetic chemistry, for use by two-wheelers. Petroleum & Natural Gas and Corporate Affairs launched IOCL's Mobile Healthcare Scheme, a Corporate Social Responsibility (CSR) initiative of IOCL. Indian Oil Corporation's (IOCL) Rural Mobile Health Scheme (Sachal Swasthya Seva), launched as part of its corporate social responsibility (CSR) agenda, was formally inaugurated on all-India basis.
In 2013 IOC planned for capacity expansion at Doimukh depot and also IOCL inked MoU for Rs 5-k cr natural gas terminal in Odisha
In 2014 IOCL conferred SCOPE Meritorious Award for CSR and Responsiveness by the Hon'ble President of India. IOCL R&D also wins National Awards for Technology Innovation -IOCL wins BML Munjal Award for Business Excellence
In 2015 Indian Oil Corporation commenced construction work on its proposed 4 MW solar power project at Muttam village in the district. IOC also inked MoU with Nepal Oil Corporation.
The Board of Directors of IOCL at its meeting held on 29 January 2015 approved the laying of Paradip-Hyderabad product pipeline at an estimated cost of Rs 2789 crore. The board also approved construction of 0.6 MMTPA LPG Import Facility at Paradip and augmentation of Paradip-Haldia-Durgapur LPG pipeline.
The Board of Directors of IOCL at its meeting held on 13 February 2015 approved the setting up of Ethylene Glycol Project alongwith associated facilities at Paradip at an estimated project cost of Rs 3752 crore. The project would help in consolidating the Glycol business of the company by producing low cost Mono Ethylene Glycol based on FCC off gas. The board also approved construction of dedicated Naphtha pipeline from Jaipur to Panipat alongwith augmentation of Koyali-Sanganer product pipeline at an estimated cost of Rs 890 crore. The pipeline would help in meeting the Naphtha requirement of IOCL's Naphtha Cracker Complex at Panipat.The board also approved implementation of project for 100% BS-IV compliant MS and HSD production facilities at Gujarat refinery at an estimated cost of Rs 1843 crore. The board also approved implementation of project for 100% BS-IV compliant MS and HSD production facilities at Barauni refinery at an estimated cost of Rs 1327 crore.
On 27 April 2015, IOCL announced that it has started the process of commissioning its 15 MMTPA state-of-the-art Paradip refinery. On 24 November 2015, IOCL announced that the first consignment of products from its Paradip refinery comprising of High Speed Diesel, Superior Kerosene and Liquefied Petroleum Gas was dispatched on 22 November 2015.
The Board of Directors of IOCL at its meeting held on 13 August 2015 approved investment of Rs 1000 crore in Non-convertible Cumulative Redeemable Preference Shares to be issued by Chennai Petroleum Corporation Limited (subsidiary of IOCL) on private placement preferential allotment basis.
On 21 August 2015, Government of India announced notice of Offer for Sale (OFS) of 24.27 crore equity shares of IOCL aggregating to 10% of the total paid up equity share capital of the company through the separate window provided by the stock exchanges for this purpose. The floor price for the OFS was set at Rs 387.
On 31 December 2015, Indian Oil Corporation announced that it has entered into a binding Gas Sale and Purchase Agreement (GSPA) with Petronet LNG Limited (PLL) for procurement of an additional quantity of 0.3 MMTPA of RLNG with effect from January 2016. This is in addition to the existing long term GSPA of 2.25 MMTPA, which was executed in September 2003.
The Board of Directors of IOCL at its meeting held on 29 August 2016 recommended issue of bonus shares in the ratio of 1:1.
The Board of Directors of IOCL at its meeting held on 29 September 2016 accorded in-principle approval for expansion of the refining capacity of Barauni, Bihar refinery from 6 MMTPA to 9 MMTPA alongwith downstream Polypropylene unit at an estimated cost of Rs 8287 crore. The board also gave in-principle approval for implementation of Olefin Recovery Project alongwith expansion of existing Naphtha Cracker Unit, MEG revamp and Benzene Expansion Unit modifications at Panipat at an estimated cost of Rs 1527 crore.
Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL) and Bharat PetroResources Limited (BPRL), through a joint venture company formed by their wholly-owned subsidiaries in Singapore, completed two transactions on 5 October 2016 viz., acquisition of 23.9% shares of the charter capital of JSC Vankorneft, a company organised under the laws of the Russian Federation, which is the owner of Vankor and North Vankor Field licenses, from Rosneft Oil Company (Rosneft), a National Oil Company of Russia, and acquisition of 29.9% of the participatory share in the charter capital of LLC Taas Yuryakh Neftegazodobycha (TYNGD), from LLC RN Razvedka I Dobychya, a wholly-owned subsidiary of Rosneft.
The definitive agreements for the Vankor transaction were signed in June 2016 and for the Taas transaction in March 2016. In JSC Vankorneft, post-closing of transactions, Rosneft will hold about 61.1% shares and ONGC Videsh Ltd (through its subsidiary) will hold the remaining 15%. In TYNGD, post-closing of the transaction, Rosneft (through subsidiary) will hold about 50.1% share and BP (through subsidiary) will hold the remaining 20% share. Vankor field, located in East Siberia is Russia's second largest field by production and accounts for around 4% of Russian production. In 2015, the Vankor field produced 22 million tonnes of oil and 8.71 BCM of gas. TYNGD is expected to ramp up the production of crude oil to 5 million tonnes by 2021.
Indian Oil Corporation Ltd. (IOCL), NTPC Ltd., Coal India Ltd. (CIL), Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corp. Ltd. (HFCL) signed a Supplemental Joint Venture Agreement on 31 October 2016 for IOCL, FCIL and HFCL joining the Joint Venture Company Hindustan Urvarak and Rasayan Ltd. (HURL), which had been formed by NTPC and CIL for revival of the fertiliser plants at Gorakhpur, Sindri and Barauni. Each of these plants will have 1.27 million tons per year Urea production capacity. With the execution of the Supplemental JVA, the equity participation of IOCL, NTPC and CIL in HURL will be 29.67% each (total 89.01%) and the balance 10.99% will be by FCIL (7.33%) and HFCL (3.66%).
Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. signed a Consortium Agreement on 7 December 2016 to carry out pre-project activities for setting up of West Coast Refinery and a Petrochemical Project of approximately 60 Million Metric Tonnes Per Annum (MMTPA) capacity in Maharashtra through a Joint Venture Company.
On 17 March 2016, IOCL announced that it has signed an agreement with 3M India Ltd. for setting up 3M auto care centres at IOCL's retail fuel outlets. The auto care centres will be operated by the franchisees appointed by 3M India Ltd.
On 25 May 2017, IOCL announced that the company registered record annual net profit of Rs 19106 crore for the financial year 2016-17 as compared to a profit of Rs 11242 crore for the financial year 2015-16.
On 16 June 2017, IOCL announced that it has successfully rolled out daily price revision of petrol and diesel across the country through its network of 26,000-plus petrol pumps.
On 10 July 2017, IOCL and carbon recycling company LanzaTech signed a Statement of Intent to construct the world's first refinery off gas-to-bioethanol production facility in India.
On 24 July 2017, IOCL announced that it was ranked 168th in the Fortune 'Global 500' listing for 2017. IOCL was the only Indian company in top 200 in the prestigious list.
The Board of Directors of IOCL at its meeting held on 3 August 2017 accorded first stage approval for the expansion of Gujarat refinery capacity by 4.3 Million Metric Tonnes Per Annum (MMTPA) to 18 MMTPA at an estimated cost of Rs 15034 crore. The board also gave first stage approval for installation of 2nd Catalytic De-waxing unit at Haldia refinery at an estimated cost of Rs 1126 crore. The unit would produce Grade-II & III Lube Oil base stock. The board also gave first stage approval for installation of Ethanol Plant using Gas Fermentation Technology of M/s. LanzaTech USA at Panipat refinery at an estimated cost of Rs 441 crore. The board also approved acquisition of up to 50% equity stake in GSPL LNG Ltd., which is setting up a 5-MMTPA LNG Terminal at Mundra Port in Gujarat.
On 19 August 2017, IOCL announced that the contentious issue of VAT deferment on products produced by the company's Paradip refinery in Odisha and sold in the state has been resolved.
IOCL commenced production of gas and condensate from Dirok field in Assam on 26 August 2017, marking advent of its first domestic exploration asset maturing from exploration stage to a producing asset. IOCL holds 29.03% participating interest in the block, located near Digboi in Assam, along with Hindustan Oil Exploration Company (HOEC 26.88%, Operator) and Oil India Limited (OIL 44.08%, Licensee).
On 19 November 2017, IOCL in collaboration with Ola launched the country's first electric charging station at its fuel station at RBI Square, Nagpur.
The Promoter of the Company, i.e., the President of India, was holding 491,21,49,459 equity shares, constituting 52.18% of the total equity share capital, as on April 1, 2019. The President, acting through the MoP&NG, disinvested 6,40,16,281 shares during July 2019 in favour of CPSE ETF (an exchange traded fund comprising 11 stocks managed by Reliance Nippon Life Asset Management Company). Thereby, the holding of the President of India got reduced to 484,81,33,178 equity shares, constituting 51.50% of the paid-up equity share capital of the Company.
During the year 2019-20, the Company commissioned the Motihari - Amlekhganj products pipeline, the first transnational pipeline of the country, in July, 2019. For the first time in India, the first batch of 10% ethanol - blended petrol was pumped through the Mathura - Tundla pipeline in April, 2019. Subsequently, the same was carried out in the Mathura - Delhi pipeline in October, 2019 and in Mathura - Bharatpur pipeline in February, 2020.
During the year 2019-20, the country's first Compressed Bio-Gas dispensing station was commissioned by the Company in Pune, followed by another station in Kolhapur. As a part of Company's plan to foray into alternative energy segment, 54 battery charging / swapping stations were also set up in partnership with various companies. It commissioned new automated bulk storage terminals at Una (Himachal Pradesh) and Doimukh (Arunachal Pradesh) during the year. In addition, new LPG bottling plants were commissioned at Bhatinda (Punjab), Banka (Bihar) and Tirunelveli (Tamil Nadu) to improve turnaround of LPG cylinders. It commissioned 524 new LPG
distributorships, taking their total number to 12,450. It commissioned the 700-KTA Polypropylene (PP) plant at Paradip in July 2019. As on March 31, 2020, 54 battery charging / swapping stations have been installed at its various retail outlets.
During the year 2019-20, a new Joint Venture Company, viz., IHB Private Limited, between the Company, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited was incorporated in July, 2019 for the purpose of laying, building, operating or expanding an LPG pipeline from Kandla (Gujarat) to Gorakhpur (UP). An agreement was signed by the Company's wholly-owned
subsidiary (WOS), IOC Middle East FZE, Dubai, UAE, with Qatrat Naft LLC, a WOS of Al-Jeri Transportation Co., Saudi Arabia, for the formation of a joint venture company to develop and operate a retail network in Saudi Arabia.
In 2021, India's first batch of the premium gasoline XP100 was produced from the Mathura Refinery using high octane streams from in-house researched and developed Octamax technology. During the year, 16 new crude oil grades were included in the Company's basket increasing its size to 201 crudes. It commissioned a new, INDMAX and Prime-G unit at Bongaigaon (Assam), a new NHT and
CCRU unit at Barauni (Bihar), new DHDT units at the Haldia Refinery (West Bengal) and new DHDT and HGU units at its Panipat and Gujarat refineries for improving the bottom line and efficiency of the refineries. It commissioned a 337 Km pipeline during the year 2021. Apart from commissioning of the Durgapur-Banka (193 Km) section of the Paradip-Haldia- Durgapur LPG pipeline project and the Ramanathapuram-Tuticorin section (143.5 Km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin
natural gas pipeline, capacity augmentation of the Panipat-Bhatinda pipeline was also completed during the year. It commissioned 3,000 retail outlets (ROs), which was the highest ever by any Oil Marketing Company. To promote alternative fuels, Company added 310 new CNG, 17 Compressed Biogas (CBG), 205 electric vehicle (EV) charging and 27 battery swapping stations during the year. As
of the close of the year, the Company was operating 1,059 CNG, 21 CBG, 257 EV charging and 29 battery swapping stations in the country. India's first super premium petrol, XP100, with an octane value of 100 was launched by the Company during the year. Subsequently, in May 2021, XP95 (95 Octane Premium Petrol) was launched to enable automobile manufacturers accelerate
automobile development. It commissioned 293 new LPG distributorships, taking their total number to 12,726. During the year, Indane XtraTej, differentiated LPG with nanoadditives for enhanced performance, was launched. The 5-kg cylinder, rebranded as Chhotu, was a big fillip to brand Indane. In addition, Indane composite cylinders were launched in 5 kg and 10 kg units to offer a new-age and lightweight LPG cylinder to customers. It commissioned the 1.2 MMTPA grassroots IndeDiesel unit at Haldia Refinery producing onspec BS-VI diesel. During the year, the company solarised 1658 retail outlets (ROs). As on 31 March, 2021, 18336 of IndianOil's ROs were
powered by solar power systems with cumulative installed capacity of 102.4 MW.
During the year 2022, Company commissioned 2521 retail outlets, 435 CNG stations and eight CBG stations, consistently building a formidable network infrastructure totaling to 34559 retail outlets, 1488 CNG stations and 26 CBG stations, spreading its reach further for the benefit of customers and business at large.
During year 2022, 106 km long Dahej - Koyali refinery R-LNG pipeline was commissioned and the Chennai - Trichy - Madurai product
pipeline was augmented from existing 2.3 MMTPA to 3.9 MMTPA.
During 2021-22, the Company acquired 49% equity stake in Paradeep Plastic Park Ltd., a company established for development and implementation of Paradeep Plastic Park project. Odisha Industrial Development Corporation holds the balance 51% equity in the company. The Company had ventured into setting up fertiliser plants at Barauni (Bihar), Gorakhpur (U.P.) and Sindri (Jharkhand)
through a joint venture company, Hindustan Urvarak and Rasayan Ltd., in partnership with National Thermal Power Corporation Ltd., Coal India Ltd., Fertilizer Corporation of India Ltd. and Hindustan Fertilizer Corporation Ltd. While the plant at Gorakhpur has been commissioned in May 2022.
During the year 2022, the Company established Bharat Energy Office, a Limited Liability Company (LLC) in Russia, with 20% participation, through its wholly owned subsidiary, IOCL Singapore Pte. Ltd (ISPL). A Joint Venture Company named Beximco IOC Petroleum & Energy Ltd.' (BIPEL) between IOC Middle East FZE, Dubai, a wholly owned subsidiary of the Company and RR Holdings Ltd., Ras-Al-Khaimah with equity holding of 50% each, was formed in Bangladesh. It signed a lease deed between Govt. of Sri Lanka, Ceylon Petroleum Corporation (CPC) and Lanka IOC PLC, a Subsidiary of IndianOil in Sri Lanka on January 6, 2022 for Trincomalee Tank Farm along-with the Modalities & JV agreements. It commissioned a 5 TPD cattle dung-based Biogas plant at Gorakhpur, Uttar Pradesh. It acquired a 4.93% equity stake in the Indian Gas Exchange Limited (IGX) and became its Proprietary Member. It commissioned 9 new aviation fuel stations (AFSs) during the year, at Tezu, Ratnagiri, Sindhudurg, Jabalpur, Hosur, Keshod, Gwalior, Rajahmundry and Campbell Bay, building its network to 126 AFSs across the vast geographical spread of the country. 106 LPG distributorships were commissioned during the year, taking the total number to 12813. The consistent thrive for excellence in quality management got another boost with the commissioning of fuel quality upgradation projects like Naphtha Hydrotreater Unit at Bongaigaon Refinery, Gasoline Hydro Desulfurization Unit at Gujarat Refinery and Naphtha Hydro Treater, ISOM unit at Guwahati Refinery during the year. For reduction of Nitrogen Oxide (NOx) emissions from diesel vehicles, Diesel Exhaust Fluid (DEF) plants were commissioned in Gujarat, Barauni, Panipat & Guwahati. Bongaigaon Refinery became the 1st Refinery in North East region to supply Ethanol Blended Motor Spirit (EBMS) in August 2021 followed by Gujarat and Guwahati Refineries. The Company also commenced Grid power import at Bongaigaon Refinery from June, 2021.
In July 2022, the Company issued Bonus Equity Shares in the ratio of 1:2, i.e., 1 new Equity Share for every 2 Equity Shares held.
During the year 2022-23, Company commissioned a total of 1,784 Retail Outlets (ROs) and Kisan Seva Kendras (KSKs), 303 CNG Stations, and 19 CBG Stations, consistently building a formidable retail network, totaling to 36,285 Retail Outlets, 1,788 CNG Stations, and 45 CBG Stations. Mono Ethylene Glycol (MEG) unit at Paradip was commissioned in February 2023. The first Greenfield Way Side Amenities (WSA) was commissioned in Rajasthan. It commissioned a Retail Outlet in Village Tangtse, in Ladakh UT at an altitude of 12,933 feet. It commissioned automated LAB terminal at Dumad. The first International retail outlet was commissioned in Kathmandu, Nepal in September 2022. The Bulk Explosives Plant I having 30 KTA capacity in Western India was commissioned in Western Coalfields Ltd (WCL) at Umrer, near Nagpur. Another Bulk Explosives Plant at Basundhara, in Odisha was commissioned in May 2023. The Gas Pipeline Project with an operational capacity of 119.20 MMTPA was commissioned in March, 2023.
Indian Oil Corporation Ltd
Chairman Speech
IndianOil made its mark among the 'Top 10 Strongest Oil and Gas Brands'
worldwide (Brand Finance Plc 2022 listing) and was also named as the 'Most Loved Non-FMCG
Brand' by Kantar Brandz (2022).
Dear Shareholders,
It is my privilege to present to you the Integrated Annual Report of
your Company for 2022-23. It captures the essence of a year that reflects the milestones
and values that define IndianOil, and how it has emerged as the harbinger of India's
energy transition journey.
I feel proud that our dedicated team has consistently delivered
outstanding results to enhance shareholders' value. Let me reiterate that we remain
committed to maintaining the highest standards of corporate governance, transparency, and
accountability, ensuring that the interests of our stakeholders are safeguarded at every
step.
I am happy to share that your Company's performance in 2022-23 was
indeed stellar across all operational fronts. During the year, your Company registered its
highest-ever Revenue from Operations, at H9,34,953 Crore (Rupees Nine Lakh Thirty-Four
Thousand Nine Hundred and Fifty-Three Crore). We also notched up a net profit of H8,242
Crore (Rupees Eight Thousand Two hundred and Forty-Two Crore), that underscores the
inherent resilience that empowers us to rise above global challenges and make a mark. We
also achieved the highest ever sales volume of 95.714 Million Metric Tonnes of products,
cementing our leadership position in the business. Honours also rolled in as your Company
made its mark among the 'Top 10 Strongest Oil and Gas Brands' worldwide (Brand Finance Plc
2022 listing) and was also named as the 'Most Loved Non-FMCG Brand' by Kantar Brandz
(2022).
It was also a year of shining milestones like silver jubilee
celebrations of Panipat Refinery & Petrochemical Complex, and the Pipelines Division,
golden jubilee of Bongaigaon Refinery and the diamond jubilee of Guwahati Refinery.
Values that Steer India's Energy Vision
I strongly believe that organisational success endures only when it is
backed by an unwavering commitment to values that shine above business dimensions. The
above numbers, milestones and accolades were delivered by our super-motivated energy
soldiers, demonstrating the tenet of 'Pehle Indian Phir Oil' or Nation before business, in
letter and spirit. Beyond our much-celebrated core values of Care, Innovation, Passion,
and Trust, the spirit of 'Nation-First' is infused in our DNA and has turned your Company
into the force it is today. Thus, in a natural progression, we have added another core
value, 'Nation-First,' to our existing values. To reiterate and reaffirm our commitment to
our Values, the first Values Day was celebrated on June 30, 2023. This marks the landmark
day in 1959, when Indian Oil Company Ltd., the precursor to Indian Oil Corporation Ltd.,
was incorporated.
The journey of over six decades of energising India has been deeply
fulfilling. We are geared to catalyse the country's growth trajectory, as the energy
custodians, and the architects of a brighter tomorrow. In specific terms your Company, has
a distinct vision to drive India's energy destiny. Currently, we have a 9% share in
India's energy pie, and we intend to increase our contribution to around 1/8th
or 12.5% by 2050. There is a concrete action plan to get there and establish your
Company as a 360-degree energy company, The blueprint encompasses
leveraging varied pathways to fulfil the rapidly growing energy demand of an ascendant
India.
Taking on the green mantle
Under India's G20 Presidency, 'ensuring universal energy access and
just, affordable, and inclusive energy transitions' is a key priority, that echoes the
need for striking a strategic balance while driving accelerated, inclusive, and resilient
growth in the energy sector.
Beyond fuelling, we aspire to be the vitalising force in greening an
ascendant nation. India's resolve to achieve the Net-Zero Goal by 2070, defines this 'New
India' that is ambitious, socially empathetic, and environmentally sensitive. Aligning
with these national targets, during the last Annual General Meeting, your Company
committed itself to achieving Net- Zero operational emissions by 2046, aiming to mitigate
both Scope 1 & 2 emissions.
This declaration is a defining moment in the history of your Company
that demonstrates its firm resolve of leading India's energy transition journey from the
front. We already have a well-crafted blueprint in place with a multi-pronged approach to
gradually take us towards the Net-Zero destination with an investment of around USD 30
Billion till 2046. The various emission mitigation pathways such as green hydrogen,
biofuels, renewables, carbon offsetting, and Carbon Capture Utilisation and Storage (CCUS)
are already underway to steer the green journey.
Powering Progress
While steering India's green agenda, I must underline, that given
India's progress trajectory and geopolitical realities, it is imperative to strengthen our
focus on the traditional business.
The country's energy demand is all set to go up as the Indian economy
is pacing ahead, aiming for the USD 5 Trillion mark by 2025 and USD 10 Trillion by 2030.
In fact, the tumultuous geopolitical events that unfolded in 2022, led to the developed
economies rearranging their energy baskets and lean towards conventional fuels. Let me
assure you that we are focused on accelerating the traditional energy avenues, while
shaping the green energy vision. Our physical performance of 2022-23 demonstrates the
preparedness to cater to the rising demand, efficiently and sustainably.
CAPEX Goals: Delivered & Excelled
Your Company contributes to more than 25% of the total Capex incurred
by PSUs under the Ministry of Petroleum & Natural Gas, reflecting its energy
leadership. For 2022-23, your Company achieved a Capex of H 37,287 Crore, which is 131% of
the utilisation value budgeted for the fiscal year. The ambitious Capex of H 30,395 Crore
for 2023-24 reiterates our commitment to serve the nation with all its might, in the years
ahead.
Refineries: Redefining Possibilities
In the year 2022-23, our refineries operated at a record capacity
utilisation of over 103% and achieved the highest ever crude processing volume of 72.4
Million Metric Tonnes (MMT). In fact, we continued to push boundaries to step-up the
operational efficiency of the refineries, expanded the crude basket to add 36 new crude
oil grades (reaching 247 grades) and undertook multiple projects to strengthen our core
capabilities.
In August 2022, the Prime Minister inaugurated the 2G Ethanol Plant at
Panipat, marking a significant milestone in sustainability. The first Wet Sulphuric Acid
Plant was commissioned at Haldia, and the Linear Alkyl Benzene (LAB) unit at Gujarat was
revamped. I am happy to share that your Company has formed a Joint Venture Company,
'Cauvery Basin Refinery & Petrochemicals Ltd', with the subsidiary company Chennai
Petroleum Corporation Ltd. (CPCL), to establish a 9 MMTPA Cauvery Basin Refinery (CBR) at
Nagapattinam in Tamil Nadu.
To ensure uninterrupted energy access for India's rising socio-economic
demands, we are investing over H 1 Lakh Crore in strategic brownfield capacity expansions.
The key projects under execution include refinery expansions at Panipat Refinery (from 15
to 25 MMTPA), Gujarat Refinery (from 13.7 to 18 MMTPA), Barauni Refinery (from 6 to 9
MMTPA), Digboi Refinery (from 0.65 to 1 MMTPA); these along with CBR (9 MMTPA) will
augment the refining capacity by over 26 MMTPA, taking the group refining capacity of your
Company to about 107 MMTPA in the near future.
As part of your Company's forward-looking outlook, the bouquet of
value-added offerings is continually being enhanced. The upcoming Catalytic Iso-Dewaxing
(CIDW) units at Haldia and Gujarat refineries will boost the production of Lube Oil Base
Stock (LOBS), the base ingredient of lubricants. This will give a fillip to 'Atmanirbhar
Bharat' by reducing India's import dependence by almost 25%, while cementing leadership in
the SERVO lubes segment. A 530 TMT LOBS plant is also being set up at Panipat Refinery.
Petrochemicals : Expanding footprints of success
Petrochemical integration is the way forward for us in all our refining
investments, vital for mitigating the risks from business uncertainties, while enhancing
the value of every molecule in the hydrocarbon chain. During the year 2022-23, we
continued to make significant strides in this vital sector by expanding our petrochemical
capacity from 3.7 MMTPA to 4.1 MMTPA and attained an annual petrochemical sale of 2.23 MMT
with a remarkable 4% growth in the Paraxylene (PX)/Para Terephthalic Acid (PTA) sales
segment.
Your Company continues to drive progress and self-reliance in India's
petrochemical sector with strategic investments. These include implementing a 387 KTA
Styrene unit and a 60 KTA Poly Butadiene Rubber (PBR) plant at Panipat to support the
growing demand and reducing imports of Styrene and PBR. Moreover, the upcoming polyester
yarn and fibre production facility at Bhadrak in Odisha will enhance downstream
integration in the textile industry, promote resource efficiency and generate employment
opportunities.
The Board, in a key move, has approved setting-up of Paradip
Petrochemical Complex in Odisha, at an estimated cost of over H 61,000 Crore. This is our
single largest investment at a location that will raise the Petrochemical Intensity Index
and enhance India's self-sufficiency in this critical sector.
Pipelines : Channelising Energy Excellence
Our pipelines network achieved remarkable milestones, with record
throughput of over 53 MMT for the crude and 41.7 MMT for the product pipelines. During the
financial year, 2,454 km of pipelines were commissioned, taking our energy highways to a
length of 17,564 km.
Besides being 'The Energy of India, your Company continues to support
the country's energy partnerships beyond the borders. An agreement was recently inked
between India and Nepal to develop Pipeline infrastructure and Storage Terminals in Nepal.
In 2019, your Company had constructed South Asia's first cross-border products pipeline
between Motihari (India) and Amlekhgunj (Nepal), which will now be extended up to Chitwan
(Nepal); a new transnational petroleum pipeline from Siliguri Terminal (India) to Jhapa in
Nepal, will be constructed; new Terminals will come up at Chitwan and Jhapa while
Amlekhgunj will be re-engineered as a SMART terminal.
In pursuit of strengthening the energy transition pathway, we are
collaborating with Italy's Snam SpA, to explore the possibility of converting the existing
natural gas pipelines for hydrogen transportation.
Marketing : Grit, Growth, Glory
During 2022-23, our Marketing network continued its expansion spree,
taking our customer touch points across the country to over 60,000 that include 36,445
fuel stations and 12,864 LPG distributorships. Additionally, we have acquired 41 sites to
develop Way Side Amenities (WSA), including 10 sites on the Delhi-Mumbai Expressway, which
will significantly bolster our presence on India's fast-growing highway networks.
IndianOil's strategically designed large-format fuel stations SWAGAT, are tailor-made to
suit the needs of highway travellers are turning new leaves of customer delight.
In addition to this, your Company also launched its first retail
merchandising store, 'IO Store' in Bengaluru, for an elevated shopping experience and
showcasing the rich diversity of the country. The second IO Store is coming up in Mumbai
soon.
We are also delighted at how warmly our branded fuels have been greeted
by the Indian automobile enthusiasts and we continue to spread our wings. Our 100 Octane
petrol XP100, is now being offered at over 200 retail outlets, 95 Octane petrol XP95 is
available at over 10,000 outlets, and the green diesel XtraGreen is being retailed at more
than 5,500 outlets.
In 2022-23, the sale of XP95 was 4.4% of the total petrol volumes;
XtraGreen registered a sale of 0.71% of the total diesel sold. Going forward, by the end
of 2023-24, we aim to achieve a conversion target of 10% for XP95 and 5% for XtraGreen, to
step up the revenue from branded fuels.
Our niche LPG brands, Munna, XTRATEJ, NANOCUT, and Chhotu are
performing well. I am happy to share that in LPG, our innovative streak has extended well
beyond product customisations. To ensure seamless tracking, transparency, and trust among
Indane customers, your Company, launched a pioneering QR code-based 'Track N Trace' pilot
initiative for LPG cylinders on September 02, 2022. This transformative endeavour serves
as a testament to your Company's commitment to digital leadership, elevating the customer
experience to new heights.
India's most loved homegrown lubricant brand SERVO is also on a
sensational trajectory and is attracting endorsement of the very best. On World
Environment Day 2023, your Company's brand ambassador, John Abraham launched two premium
lubricants. Servo Hypersport F5, a fully synthetic 4T Engine Oil for motorbikes
exemplifying SERVO's promise of delivering best-in-class performance. SERVO Grease Miracle
offers a sustainable, high-performance solution crafted from non-lithium indigenous raw
materials, showcasing our commitment to provide eco-friendly alternatives.
Committed to an 'Atmanirbhar Bharat'
In another remarkable achievement, IndianOil became the first Company
in India to produce and market AVGAS 100 LL, a specialised aviation fuel for two-stroke
piston engines, used by pilot training schools and army establishments. Your Company also
shipped a batch of the product to Papua New Guinea in January 2023, marking a historic
moment that positioned India as an exporter of this niche fuel, from being an importer.
Your Company has also pioneered the development of high precision
Reference Fuels in India, for certification and benchmarking by Original Equipment
Manufacturers (OEMs), automobile companies and fuel testing agencies. The first batch of
the specialised petrol has recently been produced at Paradip refinery. Panipat Refinery
will be producing the Diesel reference fuel shortly. The availability of the specialty
fuels in the country has evinced keen interest from the stakeholders, and the first sale
of reference petrol to Maruti Suzuki India Ltd., is underway.
Nurturing the Nation's Green Energy Pathways
As I mentioned earlier, to bolster India's Net- Zero ambitions by 2070,
your Company has resolved to go for Net-Zero in operational emissions (Scope 1 & 2) by
2046. From well over a decade before the declaration, the teams have been relentlessly
working on green energy pathways to catalyse India's green transition, including emission
mitigation, energy efficiency, fuel replacement, and renewable energy projects. To meet
the funding requirements for these as well as other projects, the Board of the Company has
recently announced issue of equity shares on Rights Basis to its existing shareholders, up
to H22,000 Crore. The issue of equity shares would also improve the ability of the Company
to raise debt for the projects. The shares are proposed to be issued during 2023-24,
subject to statutory approvals.
The Green Umbrella Entity
We have set out to consolidate the existing green assets under one
umbrella. This announcement, made during the inaugural IndianOil Green Energy Summit held
on March 15, 2023, set the stage for our rapid expansion across sustainable energy
sectors. These include biofuels, renewables, green hydrogen, and low carbon value chains
including Carbon offsets and CCUS (Carbon Capture, Utilisation, and Storage).
Our ambitious targets include establishing a portfolio of 5.5 GW
Renewable Energy and producing 0.7 MMT Biofuels by 2025; achieving 31 GW Renewable Energy,
producing 4 MMT Biofuels, including Biogas by 2030, and 200 GW Renewable Energy, 7 MMT
Biofuels, and 9 MMT Biogas by 2050.
Betting big on Hydrogen
IndianOil has been taking significant strides to strengthen the
hydrogen ecosystem. Our R&D Centre has been at the forefront, assessing multiple
hydrogen production pathways, including solar electrolysis, biomass gasification, and
bio-methanation. Additionally, we have initiated the demonstration of fuel cell technology
in fuel cell buses, and our prefeasibility studies for heavy-duty applications are well
underway. These pioneering endeavours exemplify our unwavering dedication to green energy
solutions.
It gives me immense pleasure to share that your Company is developing a
10 KTA green hydrogen capacity at Panipat Refinery. Furthermore, we have set up India's
first Hydrogen dispensing station at our R&D Centre in Faridabad, NCR, followed by a
station in Gujarat Refinery, to promote hydrogen mobility.
Additionally, recognising the immense potential of green hydrogen, we
have joined hands with ReNew and Larsen & Toubro (L&T) Limited to strengthen the
green hydrogen ecosystem in India.
Unbottling Possibilities
In line with our commitment towards environmental conservation,
IndianOil launched the 'Unbottled' campaign, aiming to convert over 100 Million PET
bottles annually into uniforms for our on-ground teams, non-combat uniforms for the armed
forces, and other stakeholders. The campaign has not only brought us immense pride but has
also garnered attention and recognition on a global scale. During India Energy Week held
in February 2023 in Bengaluru, I had the privilege of presenting a sustainable jacket to
our Prime Minister. The 'unbottled' apparels are now available at select fuel outlets in
Delhi NCR.
Your Company has also introduced Cycloplast, IndianOil's brand of
polymer recyclates that combine recycled petrochemicals with a portion of virgin or solo
plastic, This is poised to revolutionise the industry, fostering sustainability, and
significantly curbing the production of solo plastic,
Wave of Sustainability in Aviation Fuelling
In a historic milestone, the Petroleum Minister received India's
inaugural commercial flight powered by Sustainable Aviation Fuel (SAF) in May 2023,
marking a significant step towards decarbonising air travel, Your Company is leading the
charge in India's sustainable aviation fuel segment, An SAF Plant of 86,8 Thousand Metric
Tonnes Per Annum (TMTPA) capacity is being set-up at Panipat based on LanzaJet technology,
Your Company has formed a Joint Venture with Praj Industries Ltd,, to
develop SAF and other biofuels, We are poised to achieve the target of blending 2%
biofuels in Aviation Turbine Fuel (ATF) by 2030, propelling our environmental stewardship,
Changing Green Mobility landscape
Building upon the existing battery swapping services available at 78 of
our energy stations, your Company's Board has approved the formation of a 50:50 Joint
Venture in India, with Sun Mobility, Singapore, for setting up Battery Swapping
infrastructure at IndianOil's Retail Outlets as well as third party sites across India,
Your Company would also be making equity investment in Sun Mobility Singapore,
Pathbreaking initiatives like these will give us a firm foothold in the battery
manufacturing ecosystem, creating a diversified energy future,
Your Company has a Joint Venture with Phinergy, Israel to commercialise
Aluminium-Air battery technology in India, The Joint Venture will be creating the first
ever ecosystem for Al-Air energy in India, including R&D, manufacturing and deployment
of the system, Currently, it is in pre-commercialisation stage,
Expanding Renewables, Optimising Natural Bounties
Your Company continues to expand its renewable energy capacity through
collaborations with leading companies and has joined hands with NTPC Green Energy Limited,
to form a JV for providing 650 MW of round-the-clock green power for the upcoming refinery
projects, This is a unique initiative that demonstrates the successful adoption of
renewable energy for energy intensive plants in various industries,
Your Company is also collaborating with SJVN Limited for expanding the
renewable bouquet with solar, wind, hydro and hybrid power, The JV will also develop
Energy Storage Systems for the supply of 24X7 power, These partnerships will accelerate
the development of advanced technologies and infrastructure for green hydrogen production,
storage, and distribution, playing a vital role in India's transition to clean energy,
While greening up the energy mix, your Company is actively pursuing
initiatives to reduce water footprint and promote sustainable water management, A
first-of-its- kind Sewage Treatment Plant (STP) has been established under
Public-Private-Partnership (PPP) model at Laxmi Nagar, Mathura, It has reduced the fresh
river water intake by about 8 Million Litres per day (MLD) for Mathura Refinery, replacing
it with treated sewage water, There are plans to replicate this initiative across other
refineries as well, Gujarat Refinery too has started utilising the treated water from
Vadodara Municipal Corporation's Rajiv Nagar STP,
Greening the Road to Energy Independence
Your Company is exploring various indigenous pathways to enhance
domestic fuel production and strengthen India's energy independence,
Last year, energy Public Sector Enterprises (PSEs) achieved the 10%
Ethanol blending target in June, six months ahead of the target, Further, the Ministry of
Petroleum & Natural Gas allowed the Oil Marketing Companies to sell petrol blended
with up to 20% ethanol (E- 20), from April 01, 2023, Subsequently, E-20 was formally
launched by the Prime Minister on February 06, 2023 at select fuel stations, Your Company
has already commenced the supply of E20 fuel from 382 fuel stations and is currently
blending about 12% ethanol in petrol,
Your Company is also spearheading the promising SATAT initiative that
aims to boost the availability of biofuels as a viable green automotive option, while
reusing organic waste and strengthening the rural economy, Your Company's pioneering CBG
retail brand 'Indigreenj continues to enhance its reach, By the end of 2022-23, your
Company commissioned 22 CBG plants, offering Biogas through 46 Indigreen outlets, Notably,
a 200 Tonnes Per Day (TPD) plant has been set up in Gorakhpur using agri-crop residue and
providing an eco-friendly solution for rice straw disposal, In FHingonia, near Jaipur, a
100 TPD cattle dung based CBG plant has been set up at the FHingonia Cattle Rehabilitation
Centre, The biogas will fuel the kitchens of Akshay Patra Foundation and provide meals to
school children, March 12, 2023 was a landmark day when Union Minister of Road Transport
& Plighways, flagged-off the trials of MD-15 (Methanol blended diesel) powered buses
in Bengaluru,
This demonstrates our sustained efforts to strengthen India's energy
independence, Besides, India's abundant coal reserves can be used for Methanol production
for mobility,
Go Green forays beyond energy landscape
Beyond our operations and products, we are scripting a new chapter in
India's biodiversity conservation, In partnership with the National Tiger Conservation
Authority (NTCA), we are powering the Cheetah relocation project, We are also supporting
conservation of endangered species like the Single-Florned Rhino and Olive Ridley Turtle,
From protecting coastal ecosystems to preserving tiger habitats in Sunderbans, we are
taking steps to make a positive difference to the world,
Championing Social Stewardship Health
Your Company is proud to be a catalyst for social change and continues
to strengthen the legacy by empowering communities, igniting hope, and transforming lives
of fellow Indians, One such critical foray is our commitment to strengthen India's fight
to eliminate Tuberculosis (TB), We are supporting the Central TB Division (CTD) under the
Ministry of Health and Family Welfare (MoH&FW) to undertake intensified TB elimination
projects in the states of Uttar Pradesh, Chhattisgarh, Maharashtra, and Uttarakhand which
is being expanded in the state of Haryana as well.
Social Transformation
In yet another transformational initiative, your Company has joined
hands with various State Prison departments, to set up 'Umeed- A Hope' prison retail
outlets, that will be operated by some of the current and former inmates. The fuel
stations will also have merchandise stores, to market goods produced by the inmates.
Beyond the commercial intent, the project will empower the inmates with necessary skills,
fostering dignity, and supporting their reintegration into the society
Currently, 46 such fuel stations are being set up, while the
merchandise stores are operational at four 'Umeed' outlets in Tamil Nadu, offering a
diverse range of local products.
Preserving Heritage
Your Company has also been scripting new chapters in conserving India's
cultural legacy with the IndianOil Foundation (IOF). In association with ASI and other
bodies, the Foundation is protecting the country's glorious heritage by developing
world-class facilities at prominent tourist sites. It is also committed to enriching the
lives of the communities and preserve ecological balance.
Besides this, your Company has joined hands with the Ministry of
Tourism, Government of Maharashtra, for restoring the magnificence of the iconic Gateway
of India with a befitting illumination and the 'light and sound' show at the monument.
Building a Nation of Champions
I am delighted to share with you that your Company constantly strives
to bring positive social change through sports and contribute towards making India a
sporting nation. Supporting sports players through financial assistance, training
facilities, and scholarships, has helped many players realise their dreams and reach their
full potential. Under the CSR programme 'IndianOil Acers,' 250 scholarships for 20 sports
were provided to young players, half of which were awarded to young women. Your Company
has also launched the 'IndianOil Shakti' initiative to support 30 girls in Athletics.
I would like to share some ground-breaking initiatives by Your Company
that have left indelible marks on India's sporting landscape. These include forming the
first Corporate Women's Hockey Team, supporting IndianOil sportspersons, who have notched
up historic victories for the country, and fostering the budding sporting talent. Our
sports stars earned rich laurels, including the highest national honours like Major Dhyan
Chand Khel Ratna Award and Arjuna Awards. They kept the national flag flying high during
the Commonwealth Games, Thomas Cup, world championships in badminton, table tennis, tennis
grand slams, chess championships, and team sports like cricket and hockey tournaments.
In a trailblazing move to promote the specially-abled sportspersons of
the country, your Company is backing the Indian Para- athletes through a special
initiative, 'Road to Paralympics 2024' We remain committed to supporting these
extraordinary, gritty, sportspersons for the upcoming Asian and Paralympic Games and
fulfill the shared dream of bringing laurels for the nation.
I would like to share the success story of our landmark social foray,
'Parivartan - Prison to Pride' that stands as a shining example of your Company's
commitment to social responsibility and transformative change. Initiated on Independence
Day 2021, this programme aims to reintegrate the prison inmates into the society,
leveraging the power of sports. Extending the benefits to young inmates at juvenile
correction centres, 'Nai Disha - Smile for Juvenile' was launched on Republic Day 2023.
After the roll-out of the fifth phase of the campaign on July 15, 2023, the twin
programmes have touched the lives of about 3,600 inmates in about 80 prisons and
correction centres, across 25 states of India.
The phenomenal impact of 'Parivartan' came to the forefront when the
chess team of inmates from Pune's Yerawada Prison emerged as the first Indian team to
secure a bronze medal at the Intercontinental Chess for Freedom Online Championship for
Prisoners, organised by FIDE (World Chess Federation) in 2022. In May 2023, at the 'Chess
for Freedom' conference held in the USA, the path breaking project earned widespread
accolades. The outreach has also won your Company the coveted Sportstar Aces Award-2023 in
the category of 'Sports for Social Good'
IndianOil People: Catalysts of Progress and Excellence
In the pursuit of greatness, it is often said that numbers speak louder
than words. Yet, behind those remarkable figures lie the inspired people who make them
possible. At IndianOil, we firmly believe that people-centricity is the cornerstone of our
blueprint for excellence. We recognise that our achievements are not merely the result of
strategies and investments but of the collective passion and dedication of every
individual who contributes to our success.
Through diligent adherence to best practices and strict protocols, we
ensure that an unwavering focus on the well-being of our people drives our progress. And
genuine well-being must begin with inclusivity.
On International Women's Day 2023, we announced three crucial policy
changes to further our goal of workplace equity. These changes focus on providing more
flexible and compassionate maternity policies, complementing our existing efforts to
empower women. Initiatives such as transportation support for women employees at touring
locations and access to well- equipped creche facilities have already been implemented.
However, fostering a cultural shift that encourages both men and women to share family
responsibilities is essential. By creating an equitable society, we can ensure that
individuals can pursue their careers and family lives without sacrificing on either front.
We remain dedicated to fostering the holistic well-being of IOCians.
While we have a robust system in place for ensuring physical health of our team, we have
now introduced counselling services through our Employee Assistance Programme 'Paramarsh'
as a pilot project, in some of our offices in Delhi-NCR. The aim is to safeguard the
mental wellness of our energy soldiers who are working hard amid challenges with aplomb.
Moreover, to nurture an impeccable safety culture in our workplaces,
diligently adhering to best practices and strict protocols, the first IndianOil Safety Day
was observed on October 29, 2022 in Jaipur. The commemoration also marked the inauguration
of a memorial called 'Smriti Sthal' to pay homage to the precious lives lost, including
those of the energy soldiers in the line of duty. The occasion served to reiterate the
learnings from a major incident that took place at the location in 2009 and the resolve to
uphold the highest safety standards while energising the country.
Talking of safety, road accidents of petroleum tank trucks (TT) have
been known to cause disruption in public carriageways and often lead to fatalities, damage
to public property and pollution. On an average, about 16,000 tank trucks traverse almost
15 Lakh km daily, across varied terrains to deliver petroleum products across the country.
Similarly, 24600 vehicles for bulk and packed LPG ply almost 25 Lakh km every day to fuel
the kitchens across India.
To ensure safe driving conditions, the existing Vehicle Tracking System
(VTS) was revisited and streamlined. Key parameters like speed, harsh manoeuvring, sudden
braking, and acceleration were monitored, and accident- prone zones were analysed across
the country. Based on the findings, voice alerts were introduced for the drivers breaching
the speed limit and plying of trucks during the night was brought down by 90%. I am happy
to share that the focussed monitoring of the VTS has resulted in significant reduction in
road accidents and fatalities.
As we look ahead, we are filled with great optimism for the future. We
are committed to leveraging our strengths, exploring new vistas, embracing exciting
opportunities and driving continued growth and create value for our stakeholders and
communities.
The best part is that we are spreading our wings in the vast horizon,
beyond borders. Besides being the energy custodians of the nation, we are supporting
India's vision of strengthening the energy scenario of neighbouring countries like Nepal,
Sri Lanka and Bangladesh, among others.
Our journey is marked by a relentless pursuit of greatness, where each
milestone achieved becomes a stepping stone to a brighter future. Undoubtedly, the voyage
has been exciting and challenging in equal measures, but it has also been full of new
opportunities, opening new vistas in the energy business. For us, the essence of true
achievement lies not in numbers alone, but in the inspired souls, 1.4 Billion Indians who
breathe life into those figures, reflecting the spirit of 'Nation- First' in all that we
do.
Together, we form an indomitable force united in our quest to
illuminate the path of progress for our beloved nation. Let us be the change we want to
see in the world and cement our position as the 'Energy of India,'
Thank you for your unwavering trust and support.
Sd/-
Shrikant Madhav Vaidya
Chairman, IndianOil
  Â
Indian Oil Corporation Ltd
Company History
Indian Oil Corporation (IOC) is India's flagship Maharatna national oil company with business interests straddling entire hydrocarbon value chain from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas, petrochemicals, gas marketing, alternative energy sources and globalization of downstream operations.
The Company's operations include refineries, pipelines and marketing. Their portfolio of brands includes Indane LPGas, SERVO lubricants, XTRAPREMIUM petrol and XTRAMILE diesel and Propel Petrochemicals. In exploration and production, Indian Oil's domestic portfolio includes 11 oil and gas blocks and two coal bed methane blocks while the overseas portfolio consists of 10 blocks spread across Libya, Iran, Gabon, Nigeria, Timor-Leste, Yemen and Venezuela.
Indian Oil Corporation Ltd was established in the year 1959 as Indian Oil Company Ltd. In the year 1964, Indian Refineries Ltd merged with Indian Oil Corporation Ltd. Indian Oil Blending Ltd a wholly owned subsidiary was merged with Indian Oil on May 2006. The company transferred their entire equity holding in Indian Strategic Petroleum Reserves Ltd (ISPRL) to the Oil Industry Development Board, a government body functioning under the Ministry of Petroleum & Natural Gas. Consequently, ISPRL ceased to be a wholly owned subsidiary in May 2006.
The company formed one subsidiary company, namely IOC Middle East FZE, in Jebel Ali Free Trade Zone Dubai, with the objective of marketing lubricants and other petroleum products in Middle East, Africa and CIS regions. In June 2006, they incorporated a joint venture company namely, Indo-Cat Pvt Ltd with Intercat.Inc of USA for manufacture and marketing of FCC catalysts and additives.
In the year 2007, the company received plenty of awards, Oil Industry Safety Directorate Awards, 'Most Admired Retailer of the Year' award, 'CIO 100 Award 2007', SAP ACE - Awards for Customer Excellence and the only petroleum company as 'The Most Trusted Brand' in ET's Brand Equity's annual survey. The SERVO acquires prestigious MAN Global approvals, Indian Oil's R&D Centre gets special recognition for Bioremediation and also SERVO secures entry into NSF White Book - H1 Category during the period. The company won Retailer of the Year - Rural Impact Award and their XtraPower won Loyalty Summit Award during the year 2008.
In January 2008, the company and Hindustan Unilever Ltd (HUL) signed an MoU for setting up Kwality Walls Kiosks at select Indian Oil petrol stations across the country. Also, the company entered into an MoU with Transparency International India (TII) for implementing an Integrity Pact Programme focused on enhancing transparency in their business transactions, contracts and procurement processes. In April 2008, the company launched 'LNG at Doorstep' facility at the Pen unit of H&R Johnson, the facility, first of their kind in the country, which are primarily aimed at catering to the needs of Liquefied Natural Gas (LNG) customers who are not located on the main natural gas pipelines. The company was conferred with the 'Maharatna' status by the Government of India which provides enhanced autonomy and larger flexibility for its operation.
During the year 2009-10, the company commissioned 238 new retail outlets and 414 Kisan Seva Kendra (KSK) outlets taking their total tally to 18,643. The company's Indane LPG brand earned the coveted status of 'Superbrand'. On the lines of KSK, the Rajiv Gandhi Grameen LPG Vitarak Yojana was launched to penetrate rural markets.
During the year, the company was granted the Petroleum Exploration License for one of the two Type-S blocks in Cambay basin for which it is the operator. Upon getting the license, exploration activities were initiated in the block. The company was awarded a project for the development, extraction, upgradation and marketing of heavy oil in Carabobo heavy oil region of Venezuela in consortium with Repsol, Petronas, ONGC Videsh Ltd. and Oil India Ltd.
During the year 2010-11, the company enrolled about 46.8 lakh new Indane LPG customers and commissioned 245 new Indane distributors taking their total to 618.3 lakh and 5,311 respectively. The LPG Bottling capacity was enhanced to 5,518 TMTPA with capacity addition of 326 TMT. In order to provide LPG to rural India, the company commissioned 145 distributors under the Rajiv Gandhi Gramin LPG Vitaran Yojana under the auspices of Ministry of Petroleum & Natural Gas. As a part of their CSR activity, 10,052 new connections were released to BPL families.
During the year, the company formed a joint venture company was formed with Nuclear Power Corporation of India Ltd (NPCIL) for setting up Nuclear power plants. In July 2010, the company commissioned their first gas pipeline between Dadri and Panipat and thus they commenced gas supplies to Panipat Refinery. The company in consortium with GSPC, HPCL and BPCL won gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal, Mehsana to Bhatinda and Bhatinda to Jammu and Srinagar.
In 2012 Oil India Limited (OIL) and Indian Oil Corporation (IOCL) jointly acquired a stake in Carrizo's liquid rich shale assets in the Niobrara basin in Colorado, USA. Indian Oil (IOC) also launched a new engine oil SERVO 4T SYNTH with advanced synthetic chemistry, for use by two-wheelers. Petroleum & Natural Gas and Corporate Affairs launched IOCL's Mobile Healthcare Scheme, a Corporate Social Responsibility (CSR) initiative of IOCL. Indian Oil Corporation's (IOCL) Rural Mobile Health Scheme (Sachal Swasthya Seva), launched as part of its corporate social responsibility (CSR) agenda, was formally inaugurated on all-India basis.
In 2013 IOC planned for capacity expansion at Doimukh depot and also IOCL inked MoU for Rs 5-k cr natural gas terminal in Odisha
In 2014 IOCL conferred SCOPE Meritorious Award for CSR and Responsiveness by the Hon'ble President of India. IOCL R&D also wins National Awards for Technology Innovation -IOCL wins BML Munjal Award for Business Excellence
In 2015 Indian Oil Corporation commenced construction work on its proposed 4 MW solar power project at Muttam village in the district. IOC also inked MoU with Nepal Oil Corporation.
The Board of Directors of IOCL at its meeting held on 29 January 2015 approved the laying of Paradip-Hyderabad product pipeline at an estimated cost of Rs 2789 crore. The board also approved construction of 0.6 MMTPA LPG Import Facility at Paradip and augmentation of Paradip-Haldia-Durgapur LPG pipeline.
The Board of Directors of IOCL at its meeting held on 13 February 2015 approved the setting up of Ethylene Glycol Project alongwith associated facilities at Paradip at an estimated project cost of Rs 3752 crore. The project would help in consolidating the Glycol business of the company by producing low cost Mono Ethylene Glycol based on FCC off gas. The board also approved construction of dedicated Naphtha pipeline from Jaipur to Panipat alongwith augmentation of Koyali-Sanganer product pipeline at an estimated cost of Rs 890 crore. The pipeline would help in meeting the Naphtha requirement of IOCL's Naphtha Cracker Complex at Panipat.The board also approved implementation of project for 100% BS-IV compliant MS and HSD production facilities at Gujarat refinery at an estimated cost of Rs 1843 crore. The board also approved implementation of project for 100% BS-IV compliant MS and HSD production facilities at Barauni refinery at an estimated cost of Rs 1327 crore.
On 27 April 2015, IOCL announced that it has started the process of commissioning its 15 MMTPA state-of-the-art Paradip refinery. On 24 November 2015, IOCL announced that the first consignment of products from its Paradip refinery comprising of High Speed Diesel, Superior Kerosene and Liquefied Petroleum Gas was dispatched on 22 November 2015.
The Board of Directors of IOCL at its meeting held on 13 August 2015 approved investment of Rs 1000 crore in Non-convertible Cumulative Redeemable Preference Shares to be issued by Chennai Petroleum Corporation Limited (subsidiary of IOCL) on private placement preferential allotment basis.
On 21 August 2015, Government of India announced notice of Offer for Sale (OFS) of 24.27 crore equity shares of IOCL aggregating to 10% of the total paid up equity share capital of the company through the separate window provided by the stock exchanges for this purpose. The floor price for the OFS was set at Rs 387.
On 31 December 2015, Indian Oil Corporation announced that it has entered into a binding Gas Sale and Purchase Agreement (GSPA) with Petronet LNG Limited (PLL) for procurement of an additional quantity of 0.3 MMTPA of RLNG with effect from January 2016. This is in addition to the existing long term GSPA of 2.25 MMTPA, which was executed in September 2003.
The Board of Directors of IOCL at its meeting held on 29 August 2016 recommended issue of bonus shares in the ratio of 1:1.
The Board of Directors of IOCL at its meeting held on 29 September 2016 accorded in-principle approval for expansion of the refining capacity of Barauni, Bihar refinery from 6 MMTPA to 9 MMTPA alongwith downstream Polypropylene unit at an estimated cost of Rs 8287 crore. The board also gave in-principle approval for implementation of Olefin Recovery Project alongwith expansion of existing Naphtha Cracker Unit, MEG revamp and Benzene Expansion Unit modifications at Panipat at an estimated cost of Rs 1527 crore.
Indian Oil Corporation Limited (IOCL), Oil India Limited (OIL) and Bharat PetroResources Limited (BPRL), through a joint venture company formed by their wholly-owned subsidiaries in Singapore, completed two transactions on 5 October 2016 viz., acquisition of 23.9% shares of the charter capital of JSC Vankorneft, a company organised under the laws of the Russian Federation, which is the owner of Vankor and North Vankor Field licenses, from Rosneft Oil Company (Rosneft), a National Oil Company of Russia, and acquisition of 29.9% of the participatory share in the charter capital of LLC Taas Yuryakh Neftegazodobycha (TYNGD), from LLC RN Razvedka I Dobychya, a wholly-owned subsidiary of Rosneft.
The definitive agreements for the Vankor transaction were signed in June 2016 and for the Taas transaction in March 2016. In JSC Vankorneft, post-closing of transactions, Rosneft will hold about 61.1% shares and ONGC Videsh Ltd (through its subsidiary) will hold the remaining 15%. In TYNGD, post-closing of the transaction, Rosneft (through subsidiary) will hold about 50.1% share and BP (through subsidiary) will hold the remaining 20% share. Vankor field, located in East Siberia is Russia's second largest field by production and accounts for around 4% of Russian production. In 2015, the Vankor field produced 22 million tonnes of oil and 8.71 BCM of gas. TYNGD is expected to ramp up the production of crude oil to 5 million tonnes by 2021.
Indian Oil Corporation Ltd. (IOCL), NTPC Ltd., Coal India Ltd. (CIL), Fertilizer Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corp. Ltd. (HFCL) signed a Supplemental Joint Venture Agreement on 31 October 2016 for IOCL, FCIL and HFCL joining the Joint Venture Company Hindustan Urvarak and Rasayan Ltd. (HURL), which had been formed by NTPC and CIL for revival of the fertiliser plants at Gorakhpur, Sindri and Barauni. Each of these plants will have 1.27 million tons per year Urea production capacity. With the execution of the Supplemental JVA, the equity participation of IOCL, NTPC and CIL in HURL will be 29.67% each (total 89.01%) and the balance 10.99% will be by FCIL (7.33%) and HFCL (3.66%).
Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. signed a Consortium Agreement on 7 December 2016 to carry out pre-project activities for setting up of West Coast Refinery and a Petrochemical Project of approximately 60 Million Metric Tonnes Per Annum (MMTPA) capacity in Maharashtra through a Joint Venture Company.
On 17 March 2016, IOCL announced that it has signed an agreement with 3M India Ltd. for setting up 3M auto care centres at IOCL's retail fuel outlets. The auto care centres will be operated by the franchisees appointed by 3M India Ltd.
On 25 May 2017, IOCL announced that the company registered record annual net profit of Rs 19106 crore for the financial year 2016-17 as compared to a profit of Rs 11242 crore for the financial year 2015-16.
On 16 June 2017, IOCL announced that it has successfully rolled out daily price revision of petrol and diesel across the country through its network of 26,000-plus petrol pumps.
On 10 July 2017, IOCL and carbon recycling company LanzaTech signed a Statement of Intent to construct the world's first refinery off gas-to-bioethanol production facility in India.
On 24 July 2017, IOCL announced that it was ranked 168th in the Fortune 'Global 500' listing for 2017. IOCL was the only Indian company in top 200 in the prestigious list.
The Board of Directors of IOCL at its meeting held on 3 August 2017 accorded first stage approval for the expansion of Gujarat refinery capacity by 4.3 Million Metric Tonnes Per Annum (MMTPA) to 18 MMTPA at an estimated cost of Rs 15034 crore. The board also gave first stage approval for installation of 2nd Catalytic De-waxing unit at Haldia refinery at an estimated cost of Rs 1126 crore. The unit would produce Grade-II & III Lube Oil base stock. The board also gave first stage approval for installation of Ethanol Plant using Gas Fermentation Technology of M/s. LanzaTech USA at Panipat refinery at an estimated cost of Rs 441 crore. The board also approved acquisition of up to 50% equity stake in GSPL LNG Ltd., which is setting up a 5-MMTPA LNG Terminal at Mundra Port in Gujarat.
On 19 August 2017, IOCL announced that the contentious issue of VAT deferment on products produced by the company's Paradip refinery in Odisha and sold in the state has been resolved.
IOCL commenced production of gas and condensate from Dirok field in Assam on 26 August 2017, marking advent of its first domestic exploration asset maturing from exploration stage to a producing asset. IOCL holds 29.03% participating interest in the block, located near Digboi in Assam, along with Hindustan Oil Exploration Company (HOEC 26.88%, Operator) and Oil India Limited (OIL 44.08%, Licensee).
On 19 November 2017, IOCL in collaboration with Ola launched the country's first electric charging station at its fuel station at RBI Square, Nagpur.
The Promoter of the Company, i.e., the President of India, was holding 491,21,49,459 equity shares, constituting 52.18% of the total equity share capital, as on April 1, 2019. The President, acting through the MoP&NG, disinvested 6,40,16,281 shares during July 2019 in favour of CPSE ETF (an exchange traded fund comprising 11 stocks managed by Reliance Nippon Life Asset Management Company). Thereby, the holding of the President of India got reduced to 484,81,33,178 equity shares, constituting 51.50% of the paid-up equity share capital of the Company.
During the year 2019-20, the Company commissioned the Motihari - Amlekhganj products pipeline, the first transnational pipeline of the country, in July, 2019. For the first time in India, the first batch of 10% ethanol - blended petrol was pumped through the Mathura - Tundla pipeline in April, 2019. Subsequently, the same was carried out in the Mathura - Delhi pipeline in October, 2019 and in Mathura - Bharatpur pipeline in February, 2020.
During the year 2019-20, the country's first Compressed Bio-Gas dispensing station was commissioned by the Company in Pune, followed by another station in Kolhapur. As a part of Company's plan to foray into alternative energy segment, 54 battery charging / swapping stations were also set up in partnership with various companies. It commissioned new automated bulk storage terminals at Una (Himachal Pradesh) and Doimukh (Arunachal Pradesh) during the year. In addition, new LPG bottling plants were commissioned at Bhatinda (Punjab), Banka (Bihar) and Tirunelveli (Tamil Nadu) to improve turnaround of LPG cylinders. It commissioned 524 new LPG
distributorships, taking their total number to 12,450. It commissioned the 700-KTA Polypropylene (PP) plant at Paradip in July 2019. As on March 31, 2020, 54 battery charging / swapping stations have been installed at its various retail outlets.
During the year 2019-20, a new Joint Venture Company, viz., IHB Private Limited, between the Company, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited was incorporated in July, 2019 for the purpose of laying, building, operating or expanding an LPG pipeline from Kandla (Gujarat) to Gorakhpur (UP). An agreement was signed by the Company's wholly-owned
subsidiary (WOS), IOC Middle East FZE, Dubai, UAE, with Qatrat Naft LLC, a WOS of Al-Jeri Transportation Co., Saudi Arabia, for the formation of a joint venture company to develop and operate a retail network in Saudi Arabia.
In 2021, India's first batch of the premium gasoline XP100 was produced from the Mathura Refinery using high octane streams from in-house researched and developed Octamax technology. During the year, 16 new crude oil grades were included in the Company's basket increasing its size to 201 crudes. It commissioned a new, INDMAX and Prime-G unit at Bongaigaon (Assam), a new NHT and
CCRU unit at Barauni (Bihar), new DHDT units at the Haldia Refinery (West Bengal) and new DHDT and HGU units at its Panipat and Gujarat refineries for improving the bottom line and efficiency of the refineries. It commissioned a 337 Km pipeline during the year 2021. Apart from commissioning of the Durgapur-Banka (193 Km) section of the Paradip-Haldia- Durgapur LPG pipeline project and the Ramanathapuram-Tuticorin section (143.5 Km) of the Ennore-Thiruvallur-Bengaluru-Puducherry-Nagapattinam-Madurai-Tuticorin
natural gas pipeline, capacity augmentation of the Panipat-Bhatinda pipeline was also completed during the year. It commissioned 3,000 retail outlets (ROs), which was the highest ever by any Oil Marketing Company. To promote alternative fuels, Company added 310 new CNG, 17 Compressed Biogas (CBG), 205 electric vehicle (EV) charging and 27 battery swapping stations during the year. As
of the close of the year, the Company was operating 1,059 CNG, 21 CBG, 257 EV charging and 29 battery swapping stations in the country. India's first super premium petrol, XP100, with an octane value of 100 was launched by the Company during the year. Subsequently, in May 2021, XP95 (95 Octane Premium Petrol) was launched to enable automobile manufacturers accelerate
automobile development. It commissioned 293 new LPG distributorships, taking their total number to 12,726. During the year, Indane XtraTej, differentiated LPG with nanoadditives for enhanced performance, was launched. The 5-kg cylinder, rebranded as Chhotu, was a big fillip to brand Indane. In addition, Indane composite cylinders were launched in 5 kg and 10 kg units to offer a new-age and lightweight LPG cylinder to customers. It commissioned the 1.2 MMTPA grassroots IndeDiesel unit at Haldia Refinery producing onspec BS-VI diesel. During the year, the company solarised 1658 retail outlets (ROs). As on 31 March, 2021, 18336 of IndianOil's ROs were
powered by solar power systems with cumulative installed capacity of 102.4 MW.
During the year 2022, Company commissioned 2521 retail outlets, 435 CNG stations and eight CBG stations, consistently building a formidable network infrastructure totaling to 34559 retail outlets, 1488 CNG stations and 26 CBG stations, spreading its reach further for the benefit of customers and business at large.
During year 2022, 106 km long Dahej - Koyali refinery R-LNG pipeline was commissioned and the Chennai - Trichy - Madurai product
pipeline was augmented from existing 2.3 MMTPA to 3.9 MMTPA.
During 2021-22, the Company acquired 49% equity stake in Paradeep Plastic Park Ltd., a company established for development and implementation of Paradeep Plastic Park project. Odisha Industrial Development Corporation holds the balance 51% equity in the company. The Company had ventured into setting up fertiliser plants at Barauni (Bihar), Gorakhpur (U.P.) and Sindri (Jharkhand)
through a joint venture company, Hindustan Urvarak and Rasayan Ltd., in partnership with National Thermal Power Corporation Ltd., Coal India Ltd., Fertilizer Corporation of India Ltd. and Hindustan Fertilizer Corporation Ltd. While the plant at Gorakhpur has been commissioned in May 2022.
During the year 2022, the Company established Bharat Energy Office, a Limited Liability Company (LLC) in Russia, with 20% participation, through its wholly owned subsidiary, IOCL Singapore Pte. Ltd (ISPL). A Joint Venture Company named Beximco IOC Petroleum & Energy Ltd.' (BIPEL) between IOC Middle East FZE, Dubai, a wholly owned subsidiary of the Company and RR Holdings Ltd., Ras-Al-Khaimah with equity holding of 50% each, was formed in Bangladesh. It signed a lease deed between Govt. of Sri Lanka, Ceylon Petroleum Corporation (CPC) and Lanka IOC PLC, a Subsidiary of IndianOil in Sri Lanka on January 6, 2022 for Trincomalee Tank Farm along-with the Modalities & JV agreements. It commissioned a 5 TPD cattle dung-based Biogas plant at Gorakhpur, Uttar Pradesh. It acquired a 4.93% equity stake in the Indian Gas Exchange Limited (IGX) and became its Proprietary Member. It commissioned 9 new aviation fuel stations (AFSs) during the year, at Tezu, Ratnagiri, Sindhudurg, Jabalpur, Hosur, Keshod, Gwalior, Rajahmundry and Campbell Bay, building its network to 126 AFSs across the vast geographical spread of the country. 106 LPG distributorships were commissioned during the year, taking the total number to 12813. The consistent thrive for excellence in quality management got another boost with the commissioning of fuel quality upgradation projects like Naphtha Hydrotreater Unit at Bongaigaon Refinery, Gasoline Hydro Desulfurization Unit at Gujarat Refinery and Naphtha Hydro Treater, ISOM unit at Guwahati Refinery during the year. For reduction of Nitrogen Oxide (NOx) emissions from diesel vehicles, Diesel Exhaust Fluid (DEF) plants were commissioned in Gujarat, Barauni, Panipat & Guwahati. Bongaigaon Refinery became the 1st Refinery in North East region to supply Ethanol Blended Motor Spirit (EBMS) in August 2021 followed by Gujarat and Guwahati Refineries. The Company also commenced Grid power import at Bongaigaon Refinery from June, 2021.
In July 2022, the Company issued Bonus Equity Shares in the ratio of 1:2, i.e., 1 new Equity Share for every 2 Equity Shares held.
During the year 2022-23, Company commissioned a total of 1,784 Retail Outlets (ROs) and Kisan Seva Kendras (KSKs), 303 CNG Stations, and 19 CBG Stations, consistently building a formidable retail network, totaling to 36,285 Retail Outlets, 1,788 CNG Stations, and 45 CBG Stations. Mono Ethylene Glycol (MEG) unit at Paradip was commissioned in February 2023. The first Greenfield Way Side Amenities (WSA) was commissioned in Rajasthan. It commissioned a Retail Outlet in Village Tangtse, in Ladakh UT at an altitude of 12,933 feet. It commissioned automated LAB terminal at Dumad. The first International retail outlet was commissioned in Kathmandu, Nepal in September 2022. The Bulk Explosives Plant I having 30 KTA capacity in Western India was commissioned in Western Coalfields Ltd (WCL) at Umrer, near Nagpur. Another Bulk Explosives Plant at Basundhara, in Odisha was commissioned in May 2023. The Gas Pipeline Project with an operational capacity of 119.20 MMTPA was commissioned in March, 2023.