Indian Oil's Mega Investment: Rs 61,077 Crore Petrochemical Complex In Odisha
India's demand for petrochemicals is projected to grow from 30-35 million tonnes now to 80 million tonnes by 2040, requiring new facilities every two years.
(Source: Unsplash)
Indian Oil Corp. plans to invest over Rs 61,000 crore to build a massive petrochemical complex in Paradip, Odisha, to meet the growing demand for petrochemicals in India's rapidly expanding economy.
The IOC signed an agreement with the Odisha government, committing Rs 61,077 crore to the project.
Petronet LNG Ltd. will spend Rs 6,500 crore to set up a liquefied natural gas terminal at Gopalpur Port, and Indian Strategic Petroleum Reserves Ltd. will invest Rs 8,743 crore to build a 4-million-tonne underground oil storage facility in Chandikhol.
IOC's investment is its largest-ever at a single location. The company already operates a large oil refinery in Paradip, which will supply materials for the new petrochemical complex. The complex will include a naphtha cracker, producing raw materials for plastics, textiles, and other chemicals, and is expected to be ready by 2029.
India's demand for petrochemicals is projected to grow from 30-35 million tonnes now to 80 million tonnes by 2040, requiring new facilities every two years. The Paradip complex will produce various petrochemicals like phenol, polypropylene, and PVC, which are essential for industries like pharmaceuticals and agriculture, reducing reliance on imports.
Oil Minister Hardeep Singh Puri highlighted that India's chemicals and petrochemicals market, currently worth Rs 18 lakh crore, could grow to Rs 85 lakh crore by 2040. He emphasized the potential for growth due to India's low per capita consumption compared to developed countries.
The government is taking steps to boost the sector, aiming to make India a global manufacturing hub. Odisha's location makes it ideal for exporting to Southeast Asia and beyond.
The IOC has already invested Rs 55,000 crore in Paradip's refinery and chemical facilities, which will support the new petrochemical complex.
"The Paradip petrochemical complex will be a game-changer, catalysing industrial growth and self-sufficiency in the entire eastern region," he said.
"The Paradip Petrochemical Project will significantly substitute imports in the chemicals and petrochemicals sector. This project will save over Rs 30,000 crore annually in foreign exchange, bolstering our economic resilience." Petronet signed an MoU to set up its maiden LNG terminal on the east coast of India.
Its CEO AK Singh said the company has decided to set up a land-based 5 million tonnes a year import terminal at Gopalpur.
Previously, Petronet was looking to set up a floating storage and regasification unit-based LNG terminal with a capacity of 4 million tons per annum in Phase 1, with provision for converting to 5 million tonnes per annum land-based terminal at Gopalpur Port in Odisha.
"We have now got land so we have decided to convert it into a land-based terminal," he said.
Petronet already has two LNG import facilities at Dahej in Gujarat and Kochi in Kerala.
Dahej LNG terminal currently has a capacity of 17.5 million tonnes and is under expansion to 22.5 million tonnes. The Kochi LNG terminal has a nameplate capacity of 5 million tonnes.
