Indian Oil Corporation (IOCL) has announced an investment of Rs 610.77 billion to set up a state-of-the-art petrochemical complex at Paradip, Odisha. This marks the company’s largest-ever investment at a single location and represents a significant step in IOCL’s strategy to expand its petrochemical footprint as part of its long-term transition plan.

The proposed complex has received Stage-1 approval from IOCL’s Board and will feature a world-scale cracker unit along with multiple downstream processing units. These units will produce essential petrochemical products including polypropylene (PP), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polyvinyl chloride (PVC). Additionally, it will manufacture specialised chemicals such as phenol and isopropyl alcohol, thereby strengthening India’s domestic production capacity in high-demand industrial materials.

The Paradip petrochemical project is designed to enhance IOCL’s petrochemical intensity—the percentage of crude oil converted into chemicals. Currently standing at 5–6 per cent, IOCL aims to increase this to 25 per cent, in line with capacities at its new facilities in Paradip and Panipat, which are already operating at 15–20 per cent.

This mega project is also expected to act as a catalyst for regional industrial development by providing a reliable domestic feedstock supply to sectors like plastics, pharmaceuticals, agrochemicals, personal care, and paints. Furthermore, it will support the growth of the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) and the Plastic Park at Paradip. The project is projected to generate substantial employment opportunities and contribute to the economic development of Eastern India.

News source: Projects Today