Kolkata-based Sikaria Infraprojects Ltd has proposed to develop a plastic park in Odisha at Paradip, banking on the feedstock to be offered by the upcoming oil refinery cum petrochemical complex of Indian Oil Corporation Ltd (IOCL) at the same site.
The private developer is likely to float a special purpose vehicle with Industrial Infrastructure Development Corporation of Odisha (Idco) for the project, whose outlay is pegged at Rs 85.54 crore, excluding land cost.
The plastic park would come up on 150 acres of land close to the IOCL township. The land cost is estimated at Rs 69.85 crore. Acquisition of land for the project is already done by Idco.
“Sikaria’s proposal will be sent to the empowered committee on infrastructure,” said chief secretary B K Patnaik.
Being developed under the ‘Plastic Park Scheme’ of department of chemicals and petrochemicals, Government of India, the park will have a Central grant component of Rs 40.20 crore in its overall investment.
The site for the park is within the processing area of the upcoming petroleum, chemicals and petrochemicals investment region (PCPIR) hub at Paradip. The site would enable the plastic units to have easy feedstock sourcing from the IOCL refinery besides offering other advantages like proximity to Paradip and Dhamra ports.
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Olefins are the raw materials for plastic making which can be derived from IOCL's petrochemicals complex. Olefins include ethylene, propylene and butadiene. Both ethylene and propylene are important sources of industrial chemicals and plastics products. Presently, the plastic industries in Odisha are sourcing raw materials from Haldia and Gujarat.
The site would also offer hinterland connectivity owing to its proximity to National Highway-5, State Highway-12 and Cuttack-Paradip and Paradip-Haridaspur rail links of East Coast Railway (ECoR).
Plastic units in the park are expected to manufacture a wide array of products like fibres, reinforced pipes, automobile parts, pipes, corrugated sheets, woven sacks, bottles, construction materials and HDPE (high-density polyethylene) based furnitures.
The plastic park would offer some common facilities including raw material bank, incubation centre, common machine room, training centre, testing centre and business facilitation hall.
Meanwhile, a plastic, polymer and allied cluster is also coming up at Balasore in north Odisha. This cluster is being implemented by special purpose vehicle (SPV) called NOCCI Balasore Infrastructure Company formed between the North Odisha Chamber of Commerce & Industry (NOCCI) and the state owned Idco.
Currently, over 100 units operate from the cluster with an annual turnover totaling to Rs 2,500 crore.