 "Odisha wants Budgetary support for IOC petro complex, PCPIR hub")
Ahead of the Union Budget 2016-17, the state government has appealed to the Centre to consider providing budgetary support for commissioning of the petrochemical complex by Indian Oil Corporation Ltd (IOCL) at Paradeep.
The petrochemical complex is coming up at the site of IOCL's recently commissioned 15 million tonne crude oil refinery. Though IOCL had planned both the refinery and the petrochemical complex concomitantly, the latter was put on the backburner with the oil major citing financial constraints.
Apart from pledging budgetary support to IOCL for the petrochemical complex, the state government has also sought funds for creation of basic infrastructure for the PCPIR (petroleum, chemical and petrochemicals investment region) hub. The PCPIR hub has been planned across an area of 284 sq km, straddling Kendrapara and Jagatsinghpur districts.
The refinery and the petrochemical complex, will be part of the projects in the PCPIR hub that is expected to attract investments to the tune of Rs 2.74 lakh crore.
"IOCL as the anchor tenant has still not firmed up its plans for a petrochemical complex because of which PCPIR has been a non-starter. Unless a cracker complex is set up in PCPIR, it would not be possible to attract the private investors to put up ancillary and downstream industries in the PCPIR. The initial investment has to be made by Government of India for development of basic infrastructure in the area", the state government wrote in its pre-budget memorandum submitted to the Union government.
The state government has urged the Centre to provide funds for creation of basic infrastructure in the PCPIR and pledge budgetary support to IOCL for financing the capital cost of the cracker unit at Pardeep.
On February 7, Prime Minister Narendra Modi dedicated IOCL's 15 million tonne refinery to the nation.
IOCL aims to operate its largest grassroot refinery at Paradeep at full 15 million tonnne per annum capacity from next fiscal.
The Paradeep refinery product mix would consist of 37.5 per cent high speed diesel, 25.3 per cent motor spirits, 13.1 per cent ATF, 5.2% propylene+LPG, 8.1% petroleum coke and 1.8 per cent sulphur. The products would be predominantly consumed in the domestic market except few quantities of motor spirits which would be exported.
The Paradeep refinery is capable of processing 100 per cent high sulphur, including 40 per cent heavy crude oil of low cost. The refinery would churn out a wide gamut of petroleum products like petrol, diesel, kerosene, aviation turbine fuel, propylene, sulphur and petroleum coke.