IndianOil inks ₹61,077-cr deal with Odisha for Paradip petrochemical complex

Indian Oil Corporation Ltd. (IndianOil) signed a Memorandum of Understanding (MoU) with the Government of Odisha to set up a world-class Petrochemical Complex at Paradip with an investment of ₹61,077 crore. This is the largest-ever investment by IndianOil at a single location.

The MoU was signed in the presence of Union Petroleum Minister Hardeep Singh Puri, Union Education Minister Dharmendra Pradhan, and Odisha CM Mohan Charan Majhi and A. S. Sahney, chairman, IndianOil.

“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,” said Puri on the occasion.

The announcement came on the sidelines of the Odisha Investors’ Meet held in New Delhi on Tuesday. This development comes at a time when India is intensifying its efforts to achieve energy security, foster industrial self-reliance, and establish globally competitive manufacturing hubs.

This is part of the company's efforts to expand its existing 15 million metric tonnes per annum (MMTPA) capacity. The dual-feed naphtha cracker will be set up near its Paradip refinery. A dual-feed cracker is a petrochemical unit capable of processing two types of feedstock—commonly naphtha and ethane or other light hydrocarbons. This enhances raw material sourcing options and boosts cost efficiency in producing a wide range of petrochemical products.

The project is expected to be completed within the next 4–5 years.

The upcoming complex will include downstream units for manufacturing a wide range of petrochemicals such as polypropylene (PP), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC), isopropyl alcohol (IPA), phenol, and butadiene. These chemicals are essential feedstock for various industries, including pharmaceuticals, agrochemicals, adhesives, and coatings, and are expected to boost the development of downstream industries and MSMEs across Eastern India.

Petroleum sector investment in the state has reached over ₹2.04 lakh crore in the last ten years.