Archive · 30 Sep 2026
Indian Oil’s Gujarat Refinery Plans Polypropylene Production by Fiscal Year-End
Indian Oil is building a new plant at its Gujarat Refinery to make polypropylene.
Polypropylene is a plastic material used in many products.
The plant is expected to begin production by the end of the current financial year.
It should make about 500,000 tonnes each year.
This will help India reduce some of its need to import polypropylene, although imports will still be needed.
The refinery currently processes about 13.7 million tonnes of crude oil annually.
It aims to reach its expanded capacity of 18 million tonnes annually by FY27.
Indian Oil is also making speciality chemicals and testing hydrogen buses.
The company expects fuel demand to eventually slow as alternative fuels become more common.
The Gujarat Refinery expects to begin producing polypropylene by the end of the current financial year.
Its 500,000-tonne-a-year polypropylene unit is intended to help substitute imports and meet domestic demand.
The refinery is currently processing about 13.7 million tonnes annually and expects to reach 18 MMTPA by FY27.
The plant will use propylene from Indian Oil’s INDMAX technology, which increases propylene yields.
Indian Oil is diversifying into speciality chemicals, petrochemicals, hydrogen operations and products for defence use.
- Who
- Indian Oil’s Gujarat Refinery, whose executive director Biplob Biswas provided the project update.
- What
- The refinery is preparing to start production at a 500,000-tonne-a-year polypropylene unit.
- When
- Production is expected by the end of the current financial year; the full 18 MMTPA refinery capacity is expected by FY27.
- Where
- The project is located at Indian Oil’s Gujarat Refinery in Koyali, near Vadodara, Gujarat.
- Why
- The polypropylene unit is intended to meet part of India’s domestic demand and substitute imports while diversifying beyond fuel production.
Reported Cost Increase
Indian Oil’s Cost Response
Project cost
Reported Cost Increase
Subsequent reports put the project cost closer to Rs 19,000 crore, compared with an earlier estimate of about Rs 17,500 crore.
Indian Oil’s Cost Response
Biplob Biswas disputed that the project had become more expensive, saying price-elasticity provisions generally protect Indian Oil from escalation and delay-related risks are borne by the construction side.
- Polypropylene capacity
- 500,000 tonnes per year
- Current crude-processing rate
- About 13.7 million tonnes per annum
- Expanded refinery capacity
- 18 million tonnes per annum
- Expected full-capacity date
- End of FY27
- Polypropylene feedstock
- Propylene generated by Indian Oil’s INDMAX technology
- Estimated project cost
- Earlier estimated at about Rs 17,500 crore; later reports placed it near Rs 19,000 crore, a rise disputed by Biplob Biswas
- Additional products
- The refinery has added a lube oil base stock unit and produces NOBS, AVGAS 100LL and specialised defence fuels