BHUBANESWAR: Indian Oil CorporationLimited (IOCLNSE -0.20 %) will invest Rs 1,00,300 crore in expanding its Paradip refinery capacity from 15 million tonnes per annum (mtpa) to 25 mtpa and setting up a naphtha cracker unit.
A high-level committee, under Chief Minister Naveen Patnaik will be clearing IOCL’s expansion proposal on Monday. IOCL will add 10mt capacity to its Paradip refinery, and build a dual feed cracker unit of 3-4 mtpa capacity, which will be fed largely (80-90 per cent by Naphtha and 10-20 per cent Ethane), it will also be setting up a 1.3 mtpa petcoke gasification plant.
The investment proposal submitted to the government, through its single window clearance system in July, also consists of a 1.4 mtpa ethylene unit, a 0.65MTPA propylene unit, 650 KTPA Poly Propylene and other related units. Patnaik’s government has been hoping to draw investments into downstream petrochemichal sector and IOCL’s petrochemical complex will help sustain them.
The expansion will require 4200 acres of government and private and land. The state–owned oil company has already invested Rs 35,000 crore in its crude oil refinery in coastal Paradip.