Published On: Mon, Apr 25th, 2016

Odisha asks Indian Oil to release equity contribution to plastic park

The Odisha government wants the project cost, excluding the grants from the central government, to be shared equally between Idco and IOCL

The Odisha government has asked Indian Oil Corporation Ltd (IOCL) to make equity contribution for the plastic park project coming up at Paradip in the vicinity of IOCL’s 15 million tonne crude oil refinery.

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Odisha asks Indian Oil to release equity contribution to plastic park

Odisha Industrial Infrastructure Development Corporation (Idco) has already formed a special purpose vehicle (SPV) for the project titled Paradip Plastic Park Ltd to monitor the project, for which at least 120 acres has already been procured.

“As per the initial estimate, the plastic park will be set up at a cost of Rs 106.78 crore out of which Rs 40 crore will be available as grant-in-aid from the Government of India. It is proposed that in view of the long-term partnership with IOCL in this venture, the project cost excluding the grants from the Government of India (Rs 66.78 crore) may be shared equally between Idco and IOCL”, Sanjeev Chopra, principal secretary, industries wrote to IOCL chairman.

The plastic park complex is expected to provide feedstock to downstream industries. It will also offer an assured market for IOCL’s refinery products. IOCL has already commissioned its crude oil refinery, investing around Rs 35,000 crore. The Paradip refinery product mix would consist of 37.5% high speed diesel, 25.3% motor spirits, 13.1% ATF, 5.2% propylene+LPG, 8.1% petroleum coke and 1.8% sulphur. The products will be predominantly consumed in the domestic market except a portion of motor spirits, which will be exported.

The IOCL refinery, its petrochemical complex, and the planned plastic park complex are an integral part of the PCPIR (petroleum, chemicals and petrochemicals investment region) hub spread over an area of 284 sq km, straddling Jagatsinghpur and Kendrapara districts in Odisha. The PCPIR hub is expected to attract investments to the tune of Rs 2.74 lakh crore. IOCL is the anchor tenant for the PCIR hub.