Indian Oil Corporation (IOC) is considering revision of it’s product mix at Paradip petrochemical project at the upcoming 15 mln tons refinery being built at an investment of Rs 29,400 crore.
As per the initial plan, IOC had planned to set up a 2.4 mln tons petrochemical project to produce paraxylene (1.2 mln tons), polypropylene and styrene (600,000 tons each)- at a cost of Rs 20,000 crore, including a power plant.
The company will make a new feasibility report, and arrive at a decision in 3-4 months after that. IOC is looking at an option of producing only polypropylene, which could delay the project. Setting up a production facility for polypropylene alone will cost Rs 5,000-6,000 crore. Polypropylene will not require a dedicated plant and its power requirement would be met from the refinery itself. Though currently, the market for polypropylene is in surplus, a deficit is expected in the next 2-3 years in the domestic market, by the time IOC is ready to commission the project.