IOC Koyali Refinery Expansion: Downstream Units the Remaining Hurdle
Indian Oil Corporation Limited's refinery expansion at Koyali, Vadodara, Gujarat is awaiting the commissioning of downstream units before it can achieve a target throughput of 18 million tonnes per annum (Mtpa), Construction World reported on 6 October 2026. Projects India tracks the project at Rs 17,825 crore, with its current stage recorded as Construction Started.
| Detail | Information |
|---|---|
| Project | Petroleum Refinery Project at Koyali — Expansion |
| Promoter | Indian Oil Corporation Limited |
| Location | Vadodara, Gujarat |
| Project Value | Rs 17,825 crore |
| Target Capacity | 18 Mtpa |
| Current Stage | Construction Started |
Project Context Within the IOC Koyali Site
The Koyali refinery is one of Indian Oil Corporation's longest-operating facilities. The current expansion, valued at Rs 17,825 crore, is aimed at raising throughput to 18 Mtpa. The headline reported by Construction World indicates that while broad construction activity is progressing, specific downstream processing units remain outstanding before the full target capacity can be declared operational. No further breakdown of the pending scope, timeline or sub-contractor appointments is available from the single reported source.
Gujarat's Position in India's Refinery Project Pipeline
The Koyali project sits within a busy state-level pipeline. Projects India tracks 123 live petroleum products refinery projects across India, of which 17 are located in Gujarat — the highest count of any individual state in this sub-sector. Maharashtra follows with 15 tracked projects, Andhra Pradesh with 14, Assam with 12, Tamil Nadu with 10 and Odisha with 9.
Gujarat's leading position reflects both its established refining infrastructure and the concentration of petrochemical corridor investment along its western coast. For suppliers and equipment makers, the state represents the single largest geographic cluster of active refinery-related capital works in the country by Projects India's records.
Stage Breakdown: Where India's Refinery Projects Stand
Across the 123 petroleum refinery projects tracked under Mining Projects on the platform, the pipeline skews heavily towards earlier stages. The current breakdown is as follows:
- Under Approvals: 53 projects
- Construction Started: 33 projects
- Planning: 21 projects
- Completed: 8 projects
- Nearly Completion: 4 projects
- Approvals Received: 2 projects
The IOC Koyali expansion is among the 33 projects at the Construction Started stage — a cohort that represents the most immediately active procurement window. Of the 53 projects under approvals, a portion will transition to active construction over coming quarters, widening the opportunity set further. Only one new petroleum refinery project was added to Projects India's tracked universe in the last 90 days, suggesting the pipeline is consolidating rather than rapidly expanding.
Other Notable Projects in the Tracked Pipeline
Beyond Koyali, the refinery pipeline contains several large-ticket entries. Bharat Petroleum Corporation Limited's proposed Refinery and Petrochemical Complex at SPSR Nellore, Andhra Pradesh carries a reported value of Rs 1,03,408 crore and is currently Under Approvals. In West Bengal, Petro Carbon and Chemicals Limited has two separate projects under approvals — a Calcined Petroleum Coke Plant at Haldia Industrial Growth Centre valued at Rs 141.5 crore and a Coal Distillation Plant at Haldia valued at Rs 91 crore. There are currently no open India tenders recorded under the Mining Projects sector on Projects India.
What this means for suppliers and contractors
The IOC Koyali expansion's status — construction under way but downstream units still pending — represents a near-term procurement window for vendors of process equipment, instrumentation, piping systems and related engineering services associated with downstream refinery configurations. Contractors already mobilised at the Vadodara site may be best placed to bid for residual packages, while those not yet engaged should monitor the project closely for tender activity.
More broadly, Gujarat's 17 tracked refinery projects make it the priority state for suppliers orienting their business development around refining capital expenditure. With 33 projects nationally at the Construction Started stage and a further 53 still under approvals, the medium-term pipeline for civil, mechanical and process contractors remains substantial. Suppliers are encouraged to review all tracked projects to identify specific opportunities aligned to their service capabilities.
Frequently asked questions
What is the capacity target for the IOC Gujarat refinery expansion?
The Indian Oil Corporation refinery expansion at Koyali, Vadodara is targeting a throughput of 18 million tonnes per annum. Construction has started on the Rs 17,825 crore project, but downstream units are still awaited before that capacity can be achieved, according to Construction World's October 2026 report.
How many petroleum refinery projects are active in Gujarat?
Projects India tracks 17 petroleum products refinery projects in Gujarat, the highest count among all Indian states in this sub-sector. Maharashtra is second with 15 and Andhra Pradesh third with 14 tracked projects.
How many Indian petroleum refinery projects have construction started?
Of the 123 petroleum products refinery projects tracked by Projects India nationally, 33 are at the Construction Started stage. A further 53 are Under Approvals and 21 are in Planning, indicating a sizeable pipeline of future construction activity.
