By Indian Oil Corporation (IOC), a state-owned refiner, announced on Wednesday that it plans to invest Rs 61,077 crore in building a petrochemical complex at Paradip, marking its largest-ever investment at a single location. The investment is part of the company’s transition plan, which includes boosting petrochemical intensity to protect against volatility. The petrochemical complex will include a world-scale cracker unit and downstream process units for producing several petrochemical products, including polypropylene, high-density polyethylene, linear low-density polyethylene, and polyvinyl chloride. It will also facilitate the production of niche chemicals and petrochemicals, such as phenol and iso-propyl alcohol. However, the company did not provide any timelines for the completion of the project.
The project is expected to significantly improve the petrochemical intensity index of Indian Oil and make it a major player in the petrochemical industry while strengthening India’s self-reliance in the sector. The complex is aligned with Prime Minister Narendra Modi’s vision of Purvodaya, which aims to accelerate the development trajectory and fuel prosperity in Eastern India. The project will catalyze the growth of PCPIR and a plastic park at Paradip.
The petrochemical complex will increase Indian Oil’s petrochemical intensity index, which refers to the percentage of crude oil that is converted directly into chemicals used to make plastic and other materials. At present, Indian Oil’s petrochemical intensity is low, at 5-6%. The company intends to increase it to 10-12%. The project is also expected to create employment opportunities in eastern India, especially in Odisha.
Shrikant Madhav Vaidya, the chairman of Indian Oil, said that the project is cutting-edge and state-of-the-art, and it will significantly advance the Atmanirbhar Bharat initiative. He further added that the project would be transformative in its impact and aligned with the prime minister’s vision of Purvodaya. On commissioning, domestically available petrochemicals are expected to provide feed and vitalize industrial growth in key downstream industries such as plastic, pharma, agrochemical, personal care, and paints.
In conclusion, the investment in the petrochemical complex at Paradip marks a significant step for Indian Oil, as it seeks to strengthen its position in the petrochemical industry and increase its self-reliance. The investment is also aligned with the government’s vision of Purvodaya and is expected to create employment opportunities in eastern India.