IOC plans petrochem focus for Paradip

Indian Oil Corporation (IOC) has decided to change the product mix of its much-delayed Paradip refinery in favour of petrochemical products. The corporation plans to weave the refinery into its ongoing plan of emerging as a major petrochemical player.

A senior executive with IOC said, "We will finalise the product mix shortly. It will be more as a petrochemical refinery and only 30 per cent of the products will be petroleum fuels."

Although the work on the refinery is expected to start in the 11th five-year plan period (2008-13), the corporation is now chalking out a roadmap for its future plan for Paradip refinery which will include Olefin as well as aromatic units for production of polymers, paraxylene and styrene.

IOC has already embarked on a petrochemical plan. It has an integrated petroleum and petrochemical complex at its Panipat refinery. The aromatic complex at the Panipat refinery will be ready by end-2005 while the naphtha cracker by 2007.

At Koyali, IOC is also setting up 0.8 million tonne per annum naphtha cracker to use surplus naphtha. Besides, it will soon commission linear alkyl benzene plant at Koyali.

In the 10th five-year plan period (2002-07), IOC has planned to invest Rs 10,852 crore in petrochemicals alone, which is about 45 per cent of the Rs 24,399 crore investment planned during this period.

The corporation envisages to invest of about Rs 25,000 crore spread over eight years. The petrochemical industry is growing at around 15 per cent. By 2010, India is set to become the third largest polymer consumer in the world compared with the 7th position now.