IOC to invest ₹61,000 crore in mega petchem project in Odisha

Indian Oil Corporation to invest ₹61,000 crore in petrochemical complex at Paradip, Odisha, meeting rising demand for chemicals.

Indian Oil Corporation (IOC), the nation's largest oil firm, will invest over ₹61,000 crore in setting up a mega petrochemical complex at Paradip in Odisha to meet the rising demand for petrochemicals in the world's fastest-growing economy, its chairman AS Sahney said.

IOC has signed a memorandum of understanding with the Odisha government at the State's investor meet, committing to invest ₹61,077 crore in the complex.

Besides IOC, Petronet LNG Ltd, India's biggest liquefied natural gas importer, signed a pact to invest ₹6,500 crore to set up a LNG import terminal at Gopalpur port in the State.

Indian Strategic Petroleum Reserves Ltd, the special purpose vehicle created by the government for setting up strategic oil reserves, signed for setting up a 4 million tonnes underground storage facility at Chandikhol in Odisha at a cost of ₹8,743 crore.

IOC's ₹61,077 crore will be the company's largest-ever investment at a single location. The firm already operates a 15 million tonnes a year capacity oil refinery in Paradip.

Sahney said the naphtha cracker, which will make raw material used to make plastics, technical textiles and other such chemicals, will be commissioned by 2029.

India's petrochemical demand is likely to rise from 30-35 million tonnes currently to 80 million tonnes by 2040, he said, adding that the country needs a new cracker every two years.