IOCL to pick up stake in Paradip Plastic Park

The proposed park has already received a grant in aid of Rs 40 crore form the Central govt

Indian Oil Corporation Ltd (IOCL) would pick up equity in the special purpose vehicle (SPV) formed by the state government controlled Odisha Industrial Infrastructure Development Corporation (Idco) for the Plastic Park project proposed at Paradip.

“IOCL will join Idco as an equity partner bringing in its wake huge financial strength and domain expertise in petrochemicals”, said a statement.

A memorandum of understanding (MoU) was signed between IOCL and Idco at the 'Petrochemicals Investor Conclave 2017' held here. The pact was signed in the presence of Dharmendra Pradhan, Union minister of Petroleum and Natural Gas and Skill Development & Entrepreneurship and Sanjiv Singh, chairman of IOCL.

However, IOCL is yet to take a call on the quantum of its stake in the plastic park SPV. The plastic park is proposed over 120 acres of land.

“We will be working out the final details on our equity participation (in Paradip Plastic Park), Equity participation would not be a bottleneck for the success of the plastic park”, said the IOCL chairman.

The proposed park has already received a grant-in aid of Rs 40 crore form the Central government. After completion, the park would host more than 100 MSME (micro, small & medium enterprises) units of the polymer sector with an employment potential generation for over 10,000 people.

Similarly, IOCL on Friday entered into pact with Institute of Chemical Technology, Mumbai for exploring the feasibility of establishing an ICT campus in Bhubaneswar. In a third agreement signed at the conclave, the oil marketing PSU and Haldia based MCC PTA India (MCPI) Ltd will establish a continuous polymerization and yarn unit in a joint venture.

The proposed continuous polymerization with yarn units would utilize purified terephthalic acid (PTA) from existing units of MCPI at Haldia and mono ethylene glycol from proposed plant of IOCL at Paradip.

MCPI employs one of the most advanced PTA technologies across the globe.