Indian Oil Corporation Ltd (IOCL) is set to invest over ₹61,000 crore in a naphtha cracker project at Paradip in Odisha’s Jagatsinghpur district. The project is part of IOCL’s larger investment plan for the state, aimed at boosting petrochemical production and generating employment opportunities.
High-Level Meeting Discusses Investment Plans
IOCL Chairman Arvinder Singh Sahney informed Odisha Chief Minister Mohan Charan Majhi about the project during a meeting at Lokseva Bhavan on Tuesday. They reviewed the progress of ongoing and upcoming IOCL projects in Odisha.
During the discussions, both parties agreed to sign a memorandum of understanding (MoU) for the naphtha cracker project in January. The Odisha government, as an equity holder in the project, will earn dividends in addition to tax revenue, according to a statement from the Chief Minister’s Office (CMO).
Expansion of Paradip Refinery and Investment Plans
As reported by newindianexpress, the naphtha cracker project is part of IOCL’s larger ₹1,00,300 crore investment plan, which received in-principle approval from the state government in August last year. This includes expanding the Paradip refinery’s capacity from 15 million tonnes per annum (MTPA) to 25 MTPA, along with the establishment of the new naphtha cracker unit.
The naphtha cracker unit is expected to be one of India’s largest projects in the sector, significantly strengthening Odisha’s position in petrochemical production.
Yarn Manufacturing Project in Bhadrak
Additionally, IOCL will lay the foundation for its upcoming yarn manufacturing project in Bhadrak’s Bhandaripokhari Textile Park in January. The ₹4,382 crore project, developed in collaboration with leading chemical company MCPI Pvt Ltd, will support large-scale garment manufacturing in the region.
Recently, IOCL’s board approved an equity contribution of ₹657.33 crore for this project. Once operational, the initiative will create thousands of jobs and drive industrial growth in the textile sector.
PX-PTA Project Nears Completion
Another key development is the Para-Xylene Purified Terephthalic Acid (PX-PTA) project, set to be commissioned by June 2025. This unit, built at a cost of ₹12,000 crore, will produce 8 lakh tonnes of para-xylene (PX) annually. It will also produce 12 lakh tonnes of purified terephthalic acid (PTA) each year. This project is crucial to IOCL’s plan to enhance its downstream refining and petrochemical operations. It aims to meet India’s rising demand for plastics and textiles.
Additional Projects Under Review
The meeting covered the progress of various IOCL projects in Odisha. These include a floating solar power initiative and an ethanol production facility. These projects align with IOCL’s broader vision of sustainable and diversified energy solutions.
Key Officials Present
The meeting included key officials from Odisha. Industries Minister Sampad Chandra Swain, Chief Secretary Manoj Ahuja, Additional Chief Secretary Nikunja Bihari Dhal, and Industries Principal Secretary Hemant Sharma participated. IOCL’s Executive Director Abhijit Chakraborty and Chief General Manager Dhananjaya Sahoo accompanied Sahney during the discussions.
