Wedoany.com Report-Apr. 10, Indian Oil Corporation Ltd. (IndianOil) has announced plans to construct a 1.5-million-metric-tonne-per-year dual-feed naphtha cracker near its Paradip refinery in Odisha, Eastern India. The project, revealed by Chairman A. S. Sahney, is set to cost over 610 billion rupees ($7.1 billion) and is expected to be completed within four to five years.

In a significant step, IndianOil formalized an agreement with the Odisha government through a Memorandum of Understanding (MoU) to establish a major petrochemical complex at Paradip. The signing took place in the presence of key figures, including Petroleum and Natural Gas Minister Hardeep Singh Puri, Education Minister Dharmendra Pradhan, and Odisha Chief Minister Mohan Charan Majhi, along with other senior officials. This initiative, valued at ₹61,077 crore, represents IndianOil’s largest single-site investment to date and aims to advance India’s petrochemical and industrial sectors.

The new facility will feature a dual-feed cracker and downstream units producing a variety of petrochemicals, such as Polypropylene, High-Density Polyethylene, Linear Low-Density Polyethylene, Polyvinyl Chloride, Phenol, Isopropyl Alcohol, and Butadiene. These materials will support industries like pharmaceuticals, agrochemicals, coatings, and adhesives, reducing reliance on imports and aligning with national self-reliance goals.

During the event, Minister Puri stated: “This state-of-the-art Petrochemicals hub will catalyse the development of Paradip Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR) and create direct & indirect employment opportunities in the region.” Minister Pradhan noted: “With petroleum sector investments of more than 2.04 lakh crore in the last decade, Odisha is on-course to become one of the most important hubs of energy transition in the world.” Chief Minister Majhi expressed optimism, saying the collaboration would drive Odisha’s industrial progress, create jobs, and position the state as a prime investment location.

Chairman Sahney emphasized the project’s broader impact, stating: “We stand today at the cusp of a transformative chapter—not just for the state of Odisha, but for India’s petrochemical landscape.” Building on IndianOil’s existing 15-million-tonne-per-year refinery and petrochemical complex at Paradip, this development will enhance downstream industries and support small businesses across Eastern India.

This investment underscores IndianOil’s role as a leader in India’s energy sector, contributing to industrial growth, job creation, and energy security while fostering economic development in the region. The project is poised to strengthen Odisha’s position as an emerging center for energy and industrial innovation.