Strategic Investment
Indian Oil Approves JV with M11 Energy for ₹1,063 Crore Sustainable Aviation Fuel Project at Paradip
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Indian Oil Corporation Limited (IOCL) has approved the formation of a 50:50 joint venture with M11 Energy Transition Pvt. Ltd. to establish a 100 KTPA HEFA-based Sustainable Aviation Fuel (SAF) project at Paradip. The estimated project cost is ₹1,063.60 crore, subject to regulatory approvals.
PRICE-SENSITIVE TRIGGER
Event: Formation of Joint Venture for SAF Project
Type: Strategic Investment & Green Energy Expansion
Impact: Positive
Immediate Effect: The development strengthens Indian Oil’s presence in sustainable fuels and aligns the company with the growing global transition toward low-carbon aviation energy solutions.
Key Metrics:
- Project Cost: ₹1,063.60 crore (±30%)
- JV Structure: 50:50 Joint Venture
- Project Capacity: 100 KTPA
- Technology: HEFA-based Sustainable Aviation Fuel
- Project Location: Paradip
Highlight Metric:
- Indian Oil approved a ₹1,063.60 crore sustainable aviation fuel project through a 50:50 JV structure.
What Happened ?
Indian Oil Corporation informed exchanges that its Board of Directors approved the formation of a 50:50 joint venture company with M11 Energy Transition Pvt. Ltd.
The proposed joint venture will establish a 100 KTPA HEFA-based Sustainable Aviation Fuel (SAF) project at Paradip.
The project carries an estimated investment of ₹1,063.60 crore, with a variation margin of ±30%, and remains subject to approvals from authorities including NITI Aayog and DIPAM.
Key Details
Sustainable Aviation Fuel Project:
- Indian Oil will form a 50:50 JV with M11 Energy Transition Pvt. Ltd.
- The JV will establish a HEFA-based Sustainable Aviation Fuel project.
- The facility will have production capacity of 100 KTPA.
- The project will be located at Paradip.
- Estimated project cost is ₹1,063.60 crore (±30%).
Strategic Importance:
- The project supports India’s transition toward cleaner aviation fuels.
- Sustainable Aviation Fuel is expected to become a key decarbonization solution for the aviation industry.
- The initiative aligns with global energy transition and ESG-focused investments.
- The project strengthens Indian Oil’s diversification into green and renewable energy businesses.
Regulatory Process:
- The project remains subject to approvals from NITI Aayog, DIPAM and other authorities.
- Board approval was granted during the meeting held on May 18, 2026.
Note:
- Project timelines and commissioning schedules have not yet been disclosed.
Risk Analysis
Key Risks:
- Delay in receiving regulatory approvals.
- Cost escalation beyond estimated project range.
- Commercial viability of SAF demand in India.
- Technology and feedstock availability risks.
- Long gestation period for project returns.
Worst Case Scenario:
- If regulatory approvals or project economics become unfavorable, implementation timelines and expected returns from the SAF project may be impacted.
Risk Level: Medium
Company Commentary
- Indian Oil’s Board approved formation of a 50:50 JV with M11 Energy Transition Pvt. Ltd.
- The JV will establish a 100 KTPA HEFA-based Sustainable Aviation Fuel project at Paradip.
- The company stated that the project cost is estimated at ₹1,063.60 crore subject to regulatory approvals.
Official Exchange Filing: Indian Oil Corporation Limited