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The delay in commissioning of the planned units of the petrochemical complex by IOCL could have a bearing on the PCPIR (Petroleum, Chemicals & Petrochemicals Investment Region) hub in Odisha. The PCPIR is proposed over an area of 284 sq km straddling the coastal districts of Jagatsinghpur and Kendrapara. IOCL is the anchor tenant of the PCPIR hub and the commissioning of the petrochemical units holds the key to attracting investors. With a processing area of 123 sq km, the PCPIR is projected to draw investments worth Rs 2.74 lakh crore.
"The latest revisions proposed by IOCL for completing different units of the petrochemical complex could put at stake investments for the PCPIR hub. We have asked Idco (Odisha Industrial Infrastructure Development Corporation) to renegotiate the timelines with the oil company and ensure that work is expedited", said a state government official.
IOCL has already invested Rs 35,000 crore on its 15 million tonne per annum (mtpa) crude oil refinery at Paradip. The oil major has committed an additional Rs 34,000 investments on a petrochemical complex.
The first unit of the petrochemical complex- a polypropylene facility, is expected to be commissioned by June 2018.
"Mechanical completion of the polypropylene complex would be done by June 2018.
Within three months of the commissioning, we will start supplies", G S Singh, executive director (Paradip refinery), IOCL had said recently.
The polypropylene unit would make use of Spheripol Technology from Basell, Italy. The unit will be capable of producing different grades of polypropylene but will commence with the production of only homo grade initially. The major facilities envisaged under the project are coker LPG treater unit, warehouse for polypropylene storage and other associated facilities like flare and cooling tower.
The polypropylene complex is estimated to cost Rs 3150 crore. IOCL has pumped in Rs 2000 crore on this unit.
But, other major units within the petrochemical complex like 1200,000 tonnes per annum purified terephthalic acid (PTA) plant and petcoke gasification based synthetic ethanol plant is scheduled to go on stream only in 2021-22. The two units would together cost IOCL Rs 28,000 crore.
With the availability of mono ethylene glycol (MEG) and PTA from these units, downstream industries like polyester chips, fibres, PET (polyethylene terephthalate) grade chips, PET film grade chips and polyester industrial yarn can be developed.