The company is looking at an investment of about 23 billion rupees ($280.1 million), S.M. Vaidya said on the sidelines of an industry event in New Delhi.
The refiner is also running a pilot project for green fuel in association with Praj Industries in the western state of Maharashtra, Vaidya added.
($1 = 82.1200 Indian rupees)
(Reporting by Mohi Narayan in New Delhi; Editing by Dhanya Ann Thoppil)