TV
Prominently poised as a mineral-rich state on India’s eastern coast, Odisha has laid out an ambitious plan to attract investments worth Rs 1.2 trillion (approximately USD 14.1 billion) over the next decade in a bold attempt to establish itself as India’s next major petrochemical hub.
According to reports from NDTV Profit, the state, with the Bay of Bengal port town Paradip at its centre, plans to radically shift its economic trajectory and strengthen India’s self-reliance in chemical production.
Indian Oil's Rs 61,000 crore bid: The cornerstone of Paradip's petrochemical future
The flagship project in this industrial drive is Indian Oil Corporation Ltd.'s (IOCL) proposed dual-feed naphtha cracker facility at Paradip in Jagatsinghpur district.
Formalised through a Memorandum of Understanding (MoU) signed between IOCL and the Government of Odisha, the Rs 61,077 crore investment will be Indian Oil's single largest at any one site.
The complex will feature a dual-feed cracker and associated downstream units to manufacture petrochemicals such as phenol, polypropylene (PP), isopropyl alcohol (IPA), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC), and butadiene.
These raw materials are crucial for the production of speciality chemicals used in pharmaceuticals, agrochemicals, coatings, adhesives, and other industries.
Importantly, the Odisha government will hold equity in the venture, enabling it to share in the profits and secure long-term tax revenues. Indian Oil is also planning to expand the capacity of its existing 15 million metric tonnes per annum (MMTPA) refinery in Paradip to 25 MMTPA, bolstering the site's industrial footprint further.
Further, Indian Oil’s commitment is expected to catalyse the relocation of overseas downstream petrochemical units to Paradip, potentially setting off a cascade of investment in secondary markets such as agrochemicals, pharmaceuticals, and packaging materials.
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Beyond petrochemicals: Odisha's multi-pronged strategy to woo industry
The Rs 1.2 trillion investment vision is not limited to petrochemicals. During Chief Minister Mohan Charan Majhi’s visit to New Delhi, Odisha secured additional Memoranda of Understanding (MoUs) with Indian Strategic Petroleum Reserves Ltd (ISPRL) and Petronet LNG to strengthen its energy infrastructure.
On the first day of his trip, Odisha also received proposals from 14 companies amounting to Rs 3,000 crore and signed 11 MoUs worth Rs 27,595 crore, expected to generate approximately 48,390 jobs. Majhi also met with key industrial figures, including HCL Tech chairperson Roshni Nadar Malhotra, and explored potential IT expansion and tech-cultural collaborations.
Global-grade incentives and infrastructure: Odisha's competitive edge
Odisha is deploying a comprehensive investor-attraction strategy to draw both domestic and foreign players. This includes offering capital investment subsidies, access to land near Paradip port, a reliable and low-cost electricity supply, and assured water resources.
The reports added that officials highlighted that the state’s infrastructure is being designed to match the standards of industrial hubs in China and Southeast Asia.
The dual-feed cracker and downstream project could significantly curb India’s petrochemical imports, establishing a robust domestic production chain.
From eastern periphery to national industrial nucleus
Odisha’s grand industrial agenda, backed by Indian Oil’s record-breaking commitment and a slew of policy incentives, marks a pivotal step in transforming the state into a petrochemical and industrial powerhouse.
By leveraging its strategic location, infrastructure, and resources, Odisha is poised to emerge as a key player in India's energy transition and manufacturing-led growth in the coming decade.
If executed as planned, the probable Rs 1.2 trillion investment over ten years could redefine not only Paradip’s future but also the industrial geography of eastern India.
