You are here: Home » Economy & Policy » News
Business Standard

Odisha sore with IOC over timeline revisions for petrochem units

IOCL has already invested Rs 35,000 crore on its 15 million tonne per annum (mtpa) crude oil refinery at Paradip.

Jayajit Dash  |  Bhubaneswar 

Indian Oil Corporation, IOCL, IOC
Indian Oil Corporation logo outside a fuel station in New Delhi. Photo: Reuters

The government has voiced its displeasure with the Ltd (IOCL) for delaying the commissioning of different projects proposed for the petrochemical complex at Paradip.

The delay in commissioning of the planned units of the petrochemical complex by could have a bearing on the PCPIR (Petroleum, Chemicals & Petrochemicals Investment Region) hub in The PCPIR is proposed over an area of 284 sq km straddling the coastal districts of Jagatsinghpur and Kendrapara. 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 for completing different units of the petrochemical complex could put at stake investments for the PCPIR hub. We have asked Idco (Industrial Infrastructure Development Corporation) to renegotiate the timelines with the oil company and ensure that work is expedited", said a state government official.

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), 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. 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 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.

First Published: Wed, November 22 2017. 19:30 IST
RECOMMENDED FOR YOU