The board of Indian Oil Corporation
has approved a project envisaging a 15 million tpa grassroot petroleum refinery
and a petrochemicals complex at Paradip in Orissa.
The project envisages production of
front-end petrochemicals, including paraxylene, polypropylene and styrene,
together with a product pipeline from the refinery to Ranchi.
IOC has sanctioned over Rs.1,100 crore
for the initial activities for the project, including technology selection,
basic engineering design, site development activities, etc. As a first step, IOC
has already installed a large crude oil terminal along with single point mooring
terminal on the coast for handling VLCCs for its refineries at Haldia and
Barauni, and the same terminal will be expanded for receipt and handling of
crude oil for the Paradip refinery.
The site for the project, consisting
of over 3,000 acres of land, was acquired by IOC a few years ago and has been
fully developed by dredging and filling along with construction of approach
roads, bridges, water & power supply, boundary wall, etc. The contracts for
the remaining infrastructure facilities are being awarded currently to make the
site ready for starting construction of the mega refinery and petrochemical
project within the next one year.
IOC had earlier planned to install a 9
million tpa petroleum refinery at the same location. However, considering the
demand for fuels and petrochemical products in the domestic and export markets,
the capacity has been enhanced to 15 million tpa to derive the benefits of
economies of scale. Petrochemical facilities have been added to use the surplus
naphtha for value addition. Plans for installation of a naphtha cracker together
with polymer units at the site are being developed simultaneously. However,
these will be implemented in the second phase.
The Government of Orissa had earlier
given a package of incentives, including sales tax deferment for 11 years, for
the refinery project.
Paradip, which already has a fully
developed port, with draft of over 13 metres handling large volumes of bulk
cargo and petroleum products, and two fertiliser units in operation, promises to
become one of the largest industrial hubs in the country with the implementation
of this mega refinery project together with a large capacity steel plant being
implemented at a location adjoining the refinery site.
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