State-owned Indian Oil Corp (IOC) today said its board has approved a Rs 4,221 crore project to set up a petrochem project at Paradip in Odisha.
The board, at its meeting yesterday, "accorded approval for implementation of 357 kilo tons per annum Ethylene Glycol Project along with associated facilities at Paradip based on off-gas of the Fluid Catalytic Cracking Unit at an estimated cost of Rs 4,221 crore," the company said in a regulatory filing.
IOC would use by-products generated from refining crude oil at its 15 million tonnes a year refinery at Paradip to manufacture Ethylene Glycol.
In the plastics industry, ethylene glycol is an important precursor to polyester fibres and resins. Polyethylene terephthalate, used to make plastic bottles for soft drinks, is prepared from ethylene glycol.
IOC said the major application of Ethylene Glycol is in the manufacture of polyester fibre, bottle grade chips and polyester grade chips. "The project would help in meeting the growing domestic demand of Ethylene Glycol in the country," it said.
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