Indian Oil to invest Rs 13,000 cr for paraxylene-PTA and glycol units in Paradip

Indian Oil Corporation Ltd (IOCL) is planning to invest Rs 13,000 crore to set up paraxylene-purified terephthalic acid (PTA) and ethylene glycol units near its refinery at Paradip (Odisha). Both the units, which are expected to be operationalised by 2020, are part of the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) hub being established at Paradip – for which IOCL is the anchor tenant (investor).
 
While glycol unit, having 350,000 tonnes annual capacity, will incur cost of Rs 3,800 crore, the paraxylene-PTA unit (with 1-million tonne capacity) will see an investment of Rs 8,000-9,000 crore.
 
Purified terephthalic acid (PTA) finds its application in the production of polyethylene terephthalate (PET), a key ingredient for producing PET bottles. Similarly, eEthylene glycol is primarily used as a raw material in the manufacture of polyester fibers and fabric industry, and PET resins (for making bottles).
 
In addition, Indian Oil Corporation is also exploring the possibility of building a petcoke gasification plant with an investment of more than Rs 15,000 crore.
 
IOCL officials said that the company was conducting the feasibility study for all the three projects.
 
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.
 
Meanwhile, IOCL said, its 15 million tonne refinery at PCPIR will be operational by November this year.

FOR COMPLETE REPORT READ: IOCL to put on stream 3 more petrochemical units by 2020