IOC scales up Paradip project

31-Mar-06

In a move that provides impetus to Indian Oil Corp. (IOC)'s proposed refinery at Paradip in Orissa, the board has cleared the proposal of a scaled-up project size from the initial 9 mln ton refinery to a 15 million ton grassroots refinery-cum-petrochemicals project. The board has sanctioned an initial expenditure of Rs 1,100 crore for this year towards technology selection, basic engineering design and site development. Petrochemical facilities have been added to the project so that the surplus naphtha can be used for value addition. The refinery-cum-petrochemicals complex will produce paraxylene, polypropylene and styrene. The investment for the entire project is expected to total to Rs 25,000 crore. The board decision to scale up the project size is driven by the demand for fuels and petrochemicals in domestic as well as export markets. Plans for the installation of a naphtha cracker along with polymer units at the site are to be implemented in the second phase.