You are here: Home » Companies » News
Business Standard

IOCL may take up 49% equity in Idco's Paradip plastic park project

A memorandum of understanding (MoU) was signed between IOCL and Idco at the 'Petrochemicals Investor Conclave 2017'

Nirmalya Behera  |  Bhubaneswar 

Indian Oil Corporation, IOCL, IOC
Photo: Reuters

Indian Oil Corporation Ltd (IOCL) might pick up a 49 per cent stake in the special purpose vehicle (SPV) formed by the state government controlled Industrial Infrastructure Development Corporation (Idco) for the project proposed at "We have taken the approval of the state government that will be taking up 49 per cent in the and will have 51 per cent stake. We will be signing a pact formally with the IOCL", said an official. Recently, the state industries department had asked to obtain the concurrence from for holding 49 per cent in the Plastic Parks Ltd along with their intention to incentivise the units in the park by offering the feedstock to the investors at a concessional rate as has been done by Nalco for the Aluminium Park. A memorandum of understanding (MoU) was signed between and at the 'Petrochemicals Investor Conclave 2017' held in November where the former had agreed on to join the JV as an partner. "We had signed a MoU that we will be picking up in the park.

We have not given any commitment as such, we are examining it", said an official. The is proposed over 120 acres of land and will be built at a cost of Rs 1.06 billion. The proposed park has already received a grant-in aid of Rs 400 million from the The development of the park is in full swing and after completion, the park would host more than 100 (micro, small & medium enterprises) polymer units with an employment potential for over 10,000 people. The land prices will come down for the units that will be housed in the park once the comes on board and invests in equity, said the official, adding have also sought grant from the state government. According to the official, the land prices are now pegged at Rs 7.9 million per acre.

First Published: Wed, February 21 2018. 19:50 IST