India's largest refiner, Indian Oil Corporation (IOC) announced Monday that it would invest Rs.9000 crore ($2.25 billion) to improve the quality of petrol and diesel production that would meet tighter regulations due to come into force from April 1, 2010.

Under India's auto fuel policy, 13 major cities will be running on Euro IV-compliant diesel and petrol by 2010, while the rest of the country will switch over to Euro III fuels.

In order to produce cleaner fuel, IOC will commission a once-through hydrocracker at its Haldia refinery in eastern India and a new hydrotreater at its Gujarat refinery.

In addition, it plans to install reactors in diesel hydro-treatment units at refineries in Panipat and Barauni by December 2009, B.N. Bankapur, director (refineries), IOC, was quoted as saying in a company statement.

While the company is meeting the present requirements of fuel quality for better environment, IOC is gearing up to respond to the future needs as well, Bankapur said, adding that various petrol quality improvement projects at all IOC refineries are expected to be commissioned by December 2009.