Indian Oil Corporation (IOC) has set a target to invest another Rs 1 trillion in Odisha, as it intends to set up petrochemical units, notably a naphtha cracker unit.
“IOC has already invested Rs 35,000 crore on their crude oil refinery in Paradip. Recently, they have submitted a plan to invest an additional Rs 1 trillion. For expansion, they have asked for a land parcel of 4,000 acres close to their refinery site,” said an official source.
The latest investment intent promises to catapult IOC the status of the biggest committed investor in Odisha. If the investment plan goes through, IOC will supersede Jindal Steel & Power (JSPL) as the biggest investor. JSPL plans to scale up its Odisha investment to Rs 1 trillion by 2030 to ramp up capacity of its integrated steel plant in Angul from six million tonnes per annum (mtpa) to 20 mtpa. The Naveen Jindal-controlled JSPL has already pumped in Rs 45,000 crore in the state. The other key investment in the pipeline is a 12 mtpa greenfield steel plant in Paradip, proposed by Sajjan Jindal-controlled JSW Steel, which has unveiled an investment package of Rs 55,000 crore on the steel plant, alongside attendant infrastructure.
For IOC, the expansion in Odisha is likely to trip on land acquisition issues. Land identified to accommodate IOC is mostly in the clutch of private landowners. “Only 800 acres have been acquired in the vicinity of IOC refinery at Paradip. The balance land needs to be acquired from private owners.”
IOC did not reply to Business Standard’s questions sent by email.
The next phase of expansion will see the establishment of a naphtha cracker unit. The facility is expected to draw key investors in petrochemicals downstream space.