Indian Oil Corporation approves PVC plant to reduce import reliance

Indian Oil Corporation Limited (IOCL) has approved a capital expenditure of over 4,000 crore rupees to establish a polyvinyl chloride (PVC) manufacturing plant in Gujarat. The project is designed to decrease India’s reliance on imported resin, which currently serves as a critical material for the pipe, automotive, and infrastructure sectors.

India is currently the world’s largest importer of PVC resin, with volumes exceeding two million tons annually. Projections suggest demand could climb to seven million tons by 2030, necessitating a shift toward local production. The investment is part of IOCL’s broader strategy to expand its downstream petrochemical footprint, which includes increasing the capacity of the Vadodara refinery and adding facilities for polypropylene and lube oil base stock.

Market demand for polymers in India is bolstered by large-scale government initiatives, such as the 'Jal Jeevan Mission,' which aims to provide piped water to rural households. Industry analysts expect domestic PVC resin production to grow at a compound annual rate of approximately 7% through 2027, driven by sustained requirements in construction and manufacturing.