Indian Oil Corporation, one of the leading Indian refiners, is eyeing huge growth opportunity in downstream sector and is gearing up to make mega investments in petrochemicals complex in Paradip. “Petrochemicals have been identified as a prime driver of future growth by Indian Oil. The company’s plans to invest Rs 7,650 crore in setting up a petrochemical complex at its Paradip refinery in Odisha in the next 3-4 years,” said B Ashok, Chairman, Indian Oil Corporation Ltd, during the Indian Oil Petrochemical Conclave held in Mumbai on February 5, 2016.

The complex will have a 700,000 tonnes per annum polypropylene (PP) plant and ethylene derivatives complex to manufacture around 350,000 tonnes of mono ethylene glycols (MEG). “Indian Oil is now looking at new projects for acrylic acid/acrylates, oxo-alcohol and hydrocarbon resin, besides ethylene derivatives and expansions in the existing product line,” informed Ashok.

Intermediates such as ethylene oxide, propylene oxide, phenol, acrylic acid, styrene, etc are used as raw materials to produce specialty chemicals, which in turn, are essential to manufacture a vast majority of consumer and technology products required in the economy. In fact, BPCL is also setting up petrochemicals plant to manufacture propylene derivatives such as acrylic acid, acrylates and oxo alcohols at its Kochi refinery site.

Speaking at the conclave, Dharmendra Pradhan, Minister of State for Petroleum & Natural Gas, said, “The entry of oil & gas PSUs into the field of petrochemicals has ushered in many big ticket petrochemical projects in the country. The recent entrants in the field of petrochemicals have been Hindustan Petroleum Corporation in collaboration with Mittal Energy Ltd (HMEL) and MRPL. ONGC Petro Additions Ltd (OPAL) is also expected to join the league during the current fiscal.”

He added, “The watershed moment in the petrochemical scenario can be defined as Indian Oil’s entry into the fray with big ticket investments of around Rs 20,500 crores in the various segments of petrochemicals including detergent, polyester and plastic raw materials fields. Indian Oil also plans to investment about Rs 30,000 crores in various petrochemical streams future.”

These projects are expected to create massive employment opportunities - direct employment to around 10,000 people and indirect employment to around 1million people. Further these investments will spur the setting up of around 800-1000 downstream converting industries in the MSME sector, propelling the growth of entrepreneurial landscape. These mega projects when fully operational are expected to also save huge valuable foreign exchange over their entire life cycle, said Pradhan.

 

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