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Indian Oil Corporation Ltd (IOCL) will operationalise the proposed paraxylene PTA and ethylene glycol units proposed near its refinery at Paradip by 2020. The combined investment in these two units is pegged at around Rs 13,000 crore.
Both the units are part of the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) hub being established at Paradip. IOCL is the anchor tenant of this hub.
"The board has given in principle approval for the glycol unit to be set up at cost of Rs 3,800 crore with a capacity of 350,000 tonnes annually. The paraxylene PTA (purified terephthalic acid) unit will see an investment of Rs 8,000-9,000 crore and will take four to five years to operate as it is a large project," said Siddhartha Mitra, executive director (petro chemicals), IOCL on the sidelines of a seminar 'Petrochem Odisha - Shaping Petrochemicals and Plastic Industries', organised by Odisha chapter of Indian Chamber of Commerce(ICC).
The paraxylene PTA unit will be of one million tonne capacity. IOCL also has plans to set up a petcoke gasification plant with an investment of more than 15, 000 crore.
"We are conducting the feasibility study for all the three projects," said Sanjiv Shah, general manager, business development, IOCL.
These facilities are in addition to a 0.7 million tonne per annum polypropylene unit coming up in the petrochemical hub, for which Union petroleum and natural gas minister Dharmendra Pradhan had laid the foundation stone in November last year. The polypropylene facility, estimated to cost Rs 3,150 crore, is scheduled to go on stream by 2017.
Pradhan had announced that the Centre has lined up investments to the tune of Rs 1 lakh crore in the hydrocarbon sector in the state over the next five to seven years.
Meabwhile, IOCL said, its 15 million tonne refinery at PCPIR will be operational by November this year.
Speaking on the occasion Vishal Agarwal chairman, ICC Odisha Chapter and vice chairman and managing director, VISA Steel Ltd said, "petrochemicals and plastic sector have been the fastest growing sector in the country."
The plastic consumption in India is 11 million tonnes annually compared to 275 million tonnes globally.
The PCPIR project in Paradip is expected to attract investment upto Rs 2.80 lakh crore out of which Rs 39,000 crore has already been invested. It is expected to generate employment for 6.5 lakh people, he added.
To promote plastic specific downstream units in the state, state run Odisha Industrial Infrastructure Development Corporation (IDCO) has formed special purpose vehicle (SPV) named as "Paradeep Plastic Park Limited" (PPPL) for establishment of a plastic park under the Plastic Parks Scheme of Union Ministry of Chemicals & Fertilisers. The park will be set up on 120 acres land in Paradip at an investment of Rs 107 crore.
Chief secretary GC Pati advised IDCO and industrial houses to think of a dynamic land acquisition policy for involving the land owners as the stake holders in the industry so that they take interest in the establishment of industries. Pati also stressed on putting in place a mechanism for chemical waste management from the very beginning as a part of the upcoming PCPIR and Plastic Park at Paradip.
Vishal Dev, chairman and managing director, IDCO said that a comprehensive infrastructure development plan has been adopted for the PCPIR which is spread over 284 sq kms area.
Avinash Joshi, joint secretary, department of chemicals and petrochemicals of the Union government, Nityananda Palai, industries director, were among others who also spoke.
