As it intensifies its transition strategy, state-owned refiner Indian Oil Corporation (IOC) said on Wednesday that it would spend Rs 61,077 crore in the construction of a petrochemical plant in Paradip.
The IOC said in a statement that its board has “approved Stage-1 for the establishment of Paradip Petrochemical Complex in Paradip at an estimated cost of Rs 61,077 crore.
“This mammoth project will represent Indian Oil’s greatest investment at a single site ever.”
It did not, however, provide a deadline for the project’s completion. This is a component of their transition strategy, which also includes increasing petrochemical intensity to help mitigate volatility. The fraction of crude oil that is transformed directly into chemicals used to manufacture plastic and other materials is referred to as petrochemical intensity.
The petrochemical complex will include a large-scale cracker unit and downstream processing facilities for generating polypropylene (PP), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polyvinyl chloride, among other petrochemical products (PVC). Also, it will make it easier to produce specialty chemicals and petrochemicals like phenol and iso-propyl alcohol.
“This mammoth project is linked with Prime Minister Narendra Modi’s vision of Purvodaya that is likely to accelerate the development trajectory and ignite prosperity in Eastern India,” said Shrikant Madhav Vaidya, chairman of IndianOil.
The Atmanirbhar Bharat program will surely advance thanks to the influence of this cutting-edge, state-of-the-art petrochemical complex.
According to IOC, the huge project would considerably raise IndianOil’s petrochemical intensity index. It will serve as a development engine for the business, propelling it to prominence in the petrochemical industry and boosting India’s sectoral self-reliance.
The project will spur Paradip’s plastic park and PCPIR’s expansion. Domestically accessible petrochemicals are anticipated to fuel industrial expansion when this project is put into operation in major downstream sectors including plastic, pharmaceuticals, agrochemicals, personal care, and paints.
Also, it is anticipated to provide job opportunities in eastern India, particularly in Odisha.
Petrol, diesel, and other fuels are made from crude oil that is processed at refineries after being pumped out of the earth and from under the seabed.
Bypassing the fuels, it may be processed to create petrochemicals. IOC’s petrochemical intensity, or the proportion of crude oil transformed into chemicals, is currently low at 5–6%. The business wants to increase it to between 10% and 12%.
