Indian Oil Corporation (IOCL) has got the board's approval to go ahead with the expansion of its Barauni Refinery in Bihar at a revised budget of Rs. 16, 724 instead of the previously quoted Rs 13.779 crore .

This expansion will increase the crude processing capacity from 6.0 million tonne per annum (MTPA) to 9.0 MTPA.

The increase of nearly Rs 2,945 crore is primarily attributed to a rise in the cost of Plant & Machinery. 

The revision in project cost is essential to account for inflationary trends in equipment and materials, particularly in the procurement of lant & machinery which forms a significant portion of capital expenditure in such large-scale industrial undertakings. 

This capacity enhancement is expected to improve operational efficiency and product availability, enabling the refinery to cater to a broader market while aligning with future fuel quality and emission standards.