IndianOil refinery-cum-petro complex at Paradip soon
New Delhi, Mar 31: Indian Oil Corporation (IOC) Board has given a go-ahead to the 15 million tonne per annum (MMTPA) refinery-cum-petrochemicals project at Paradip in Orissa.
The project, consisting of a refinery and facilities for production of front-end petrochemicals, besides a product pipeline for the refinery to Ranchi, was cleared by the Board recently, a company release said here today.
The Board also sanctioned more than Rs 1,100 crore for the initial activities of the project, including technology selection, basic engineering design and site development activities.
As a first step, IndianOil has already installed a large crude oil terminal along with single point monitoring terminal on the coast for handling large crude carriers 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 of the project, consisting of more than 3,000 acres of land, was acquired by IndianOil a few years ago. The contracts for the remaining infrastructure facilities are being awarded to make the site ready for starting construction of the mega project within the next one year.
The Orissa government had given a package of incentives, including sales tax deferment for 11 years, for the refinery project.
IndianOil had earlier planned to install 9 MMTPA fuel refinery at the same location.
However, considering the demand for fuels and petrochemical products in the domestic and economic markets, the capacity has been enhanced to 15 MMPTA to derive the benefits of economies of scale.
Petrochemical facilites have been added to use the surplus naphtha for value addition, thus enhancing the robustness of the project. Plans for the 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 release said.