Indian Oil to Invest Rs 31,000 Crore in FY25 to Focus on Green Energy – EQ
New Delhi : Indian Oil Corporation Limited (IOCL), the nation’s largest oil marketing company, plans to allocate a capital expenditure of Rs 31,000 crore for the financial year 2024-25.
This substantial investment will cover equity contributions in joint ventures and subsidiaries, as the company aims to expand its core operations and accelerate its transition towards green energy.
In the previous fiscal year, IOCL exceeded its planned capex of Rs 30,395 crore by spending Rs 38,660 crore, driven by investments in both its traditional business and renewable energy initiatives.
The company has set an ambitious target of achieving net-zero emissions by 2046. Aligning with this goal, IOCL’s board recently approved the implementation of 1 GW of renewable energy projects through a wholly-owned subsidiary, allocating Rs 5,215 crore for the initiative.
These projects will encompass standalone ground-mounted solar, onshore wind, and wind-solar hybrid installations, to be executed in phases.
For the fourth quarter of FY24, IOCL reported a consolidated net profit of Rs 5,487.92 crore, marking a 49% decline from the previous year’s figure of Rs 10,841.23 crore, primarily due to inventory losses.
Other major oil marketing companies, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), have also unveiled significant capex plans of Rs 16,000 crore and Rs 18,000 crore, respectively, for the current fiscal year.
Both companies exceeded their planned capex in FY24, investing in expansions and green energy initiatives as part of their net-zero emission targets.
