To meet the rising demand for petrochemicals, especially plastics and polymers, largest public sector company Indian Oil will invest Rs. 32,000 crore to ramp up its output by fiscal 2021.

This investment is part of the overall Rs. 1.8 trillion capex planned for the next five to seven years, IOC chairman Sanjiv Singh said recently.

The petrochemicals business contributes a quarter of the most profitable PSU's profit, which rose to the highest at Rs. 19,106 crore in fiscal 2017.

Indian Oil has already executed petrochemicals projects worth Rs 20,800 crore and is close to commission a Rs. 3,150-crore polypropelene plant at its 15-million tonne refinery at Paradip in Odisha.

Addressing the shareholders at the 58th AGM, the chairman said, "In view of the growing demand for petrochemicals products, especially for plastics and polymers, the company will invest in capacity augmentation. The capex for this is planned at Rs. 32,000 crore over the next few years."

The new projects include MEG (mono ethylene glycol), PTA (purified terephtalic acid) and petcoke gasification plants at the Paradip refinery and value addition at C-4 and C-5 at Panipat and a polypropylene unit at Barauni Refinery, he added.

Singh said the company reported its highest profit at Rs. 19,106 crore in fiscal 2017 on the back of best ever sales, refinery production and became the most profitable PSU. During the year, company's sales rose to Rs. 4,38,710 crore.

On the overall capex plan, he said, the PSU has lined up a capex of Rs. 1.8 trillion over the next five to seven years.

"This capex is to scale up our investments in areas to ensure that IOC grows profitably in terms of volumes and revenue. This will see investment of around Rs. 30,000 crore per annum in asset creation such as the expansion of the Gujarat, Barauni, Panipat and Paradip refineries.

On the gas pipelines, he said, IOC will have over 20,000-km of natural gas and liquid fuel pipes by fiscal 2021.

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