New Delhi: Indian Oil Corporation (IOC), the nation’s largest oil firm, will invest over Rs 61,000 crore in setting up a mega petrochemical complex at Paradip in Odisha to meet the rising demand for petrochemicals in the world’s fastest-growing economy, its chairman AS Sahney said.
IOC has signed a memorandum of understanding with the Odisha government at the state’s investor meet, committing to invest Rs 61,077 crore in the complex.
Besides IOC, Petronet LNG Ltd, India’s biggest liquefied natural gas importer, signed a pact to invest Rs 6,500 crore to set up a LNG import terminal at Gopalpur port in the state.
However, it did not give timelines for the completion of the project. This is a part of its transition plan, including boosting petrochemical intensity to help protect against volatility. Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other materials.
The petrochemical complex shall include a world-scale cracker unit along with downstream process units for producing several petrochemical products, including polypropylene (PP), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and poly vinyl chloride (PVC). It shall also facilitate the production of niche chemicals and petrochemicals such as phenol and isopropyl alcohol.
Shrikant Madhav Vaidya, the chairman of IndianOil, said: “This mega project is aligned with Prime Minister Narendra Modi’s vision of Purvodaya that is sure to accelerate the development trajectory and fuel prosperity in Eastern India.
“This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Atmanirbhar Bharat initiative.”
IOC said the mega project shall significantly improve the petrochemical intensity index of IndianOil. It shall be a growth driver in making the company a major player in the petrochemical industry while strengthening India’s self-reliance in the sector.
The project will catalyse the growth of PCPIR and a plastic park at Paradip. On the commissioning of this project, domestically available petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries such as plastic, pharma, agrochemical, personal care, and paints.
It is also expected to create employment opportunities in eastern India, especially in Odisha.
Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel.
It can be processed to make petrochemicals, bypassing the fuels. IOC’s petrochemical intensity — the percentage of crude oil converted into chemicals — is low at 5-6 percent at present. The company intends to take it up to 10-12 percent.
At Paradip
■ Investment largest at a single site by IOC
■ Project aims to process 10-12% of crude oil against 5-6% now
■ Unit to have cracker facility along with multiple downstream units
