IOC plans to set up Rs 7,650-cr petrochem complex at Paradip
New Delhi   18-Mar-2014

State-owned IndianOil plans to invest Rs 7,650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odisha in the next three to four years, a company executive said.

IndianOil wants to use propylene from cracked LPG and ethylene to produce plastic that is used in manufacturing furniture, disposable cups and trays, printed packaging material, plain and transparent films, currency notes, food packets and pressure-sensitive tapes.

“The board (of IOC) will this month consider setting up a 700,000-ton-per-annum polypropylene (PP) plant at an estimated cost of Rs 3,150 crore. The plant is to be built by 2017-18,” the official said. The 15-million-ton Paradip refinery, being built at a cost of Rs 29,777 crore, is likely to be mechanically completed in the next quarter, following which commissioning of various units will begin.

The company feels the consumption of polypropylene (around 10 per cent of domestic consumption) is the lowest in the eastern region.

Availability of feedstock will provide impetus to PP-based industry in Odisha and its neighbouring states.

Also being considered is a Rs 4,500-crore ethylene derivatives complex to manufacture 400,000 tons per annum of mono-ethylene glycol (MEG) or 600,000 tons of poly vinyl chloride (PVC), he said.

“Feasibility study of ethylene derivative complex (including ethylene recovery unit) is in progress and expected to be completed shortly,” he said, adding subject to techno-commercial viability, technology tie-up and detailed feasibility study will be undertaken. Mono ethylene glycol is the main ingredients for polyesters chips fibres, PET bottle grade chips, polyester industrial yarn, coolants, paint formulations, wire enamels.

Consumption of ethylene glycol is the lowest in the eastern region, the official said.

Besides polypropylene and ethylene derivatives, Paradip refinery will also produce 200,000 tons per annum of sulphur and 1.25 million tons of petcoke which can be used for manufacturing downstream products.