The Board of Indian Oil Corporation Limited (IOCL) has accorded ‘Stage-I’ approval for setting up Paradip Petrochemical Complex at Paradip in Odisha at an estimated cost of Rs 61,077 crore.

This mega project will be the state-run oil marketing company’s largest-ever investment at a single location.

The petrochemical complex shall include a world-scale cracker unit along with downstream process units for producing vital petchem products like poly propylene (PP), high density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC) — these being building blocks of different grades of plastics.

It shall also facilitate production of niche chemicals and petrochemicals like phenol, IsoPropyl alcohol (IPA) and polymer.

Notably the project has been awarded a special package by the state government of Odisha, which approved a special package of incentives to improve viability of the Paradip petrochemical complex.

IOCL chairman Shrikant Madhav Vaidya said, “This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Aatmanirbhar Bharat initiative.”

Petrochemical Intensity Index

The project is part of the company's plan to significantly improve its petrochemical intensity index.

Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other material.

Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel. It can be processed to make petrochemicals, bypassing the fuels.

IOCL's petrochemical intensity — the percentage of crude oil converted into chemicals — is low at 5-6 per cent currently. The company intends to take it up to 10-12 per cent.

The firm's newer refineries at Panipat in Haryana and Paradip in Odisha have the petrochemical intensity of 15-20 per cent which would be raised to 25 per cent, Shrikant Madhav Vaidya had told PTI in an interview last month.

Impact

The project will catalyse the growth of the Petroleum, Chemicals and Petrochemicals Investment Region and Plastic Park at Paradip.

On commissioning, the domestically available petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries like plastic, pharma, agrochemical, personal care, paints etc.

It is also expected to create employment opportunities in eastern India, especially Odisha.