The eastern Indian state of Odisha expects investments of Rs 1.2 trillion ($14.1 Bn) over the next ten years to establish a petrochemical hub near the Bay of Bengal. Indian Oil Corporation Limited, the country’s largest refiner by capacity, will contribute half the amount to set up a naphtha cracker facility.

The new complex in Paradip will include a dual-feed cracker and downstream units to produce phenol and polyethylene. Indian Oil, which already runs a refinery with a three hundred thousand barrels-per-day capacity in the region, has committed Rs 610 Bn to the project.

The state government aims to reduce petrochemical imports and position Odisha as an emerging industrial centre. Officials are offering incentives such as subsidised capital investment, lower electricity tariffs, assured water supply, and land near ports to attract global manufacturers.

Odisha is banking on rising demand for chemicals and India’s push for industrial self-reliance. Global supply chain realignments have created opportunities for the state to draw investment from overseas petrochemical firms looking to shift operations.

The infrastructure plan is designed to meet international standards and compete with industrial hubs in China and Southeast Asia.

Source:Bloomberg News