Indian Oil Corporation (IOC) has commissioned a detailed feasibility report which is expectd to be finalised in the next two months to increase the capacity of its proposed oil refinery at Paradip in Orissa to 15 million ton and build it as a petrochemical-cum-oil refinery by the year 2009-10. The investment outlay for the project is estimated at Rs 20,000 crore.
High aromatics naphtha will be produced from Panipat and Mathura refineries starting October 2005. With gas replacing naphtha, IOC will be faced with surplus naphtha has decided to stilise it to make petrochemicals. IOC, as a step towards forward integration, will start manufacturing petrochemicals like Purified Terephthalic Acid (PTA) and Paraxylene (PX). The PX/PTA project at Panipat refinery will cost Rs 4228 crore and will produce 3,57,000 tpa Paraxylene and 5,53,000 tpa PTA.
IOC is also building a Naphtha cracker and downstream polymer units (naphtha cracker complex) at Panipat at an estimated cost of Rs 6300 crore. The naphtha cracker complex is scheduled for commissioning in the year 2007-08.