The Business Bytes
TBB BUREAU
BHUBANESWAR, MARCH 9, 2021
The Indian Oil Corporation Limited (IOCL) and Odisha Industrial Infrastructure Development Corporation (IDCO) on Tuesday signed an agreement and a Memorandum of Understanding (MoU) to set up a plastic park at Paradip. The proposed park will come up on 120 acres of land with an investment of Rs Rs.106.78 crore.
The MoU was signed on a hybrid mode in presence of Chief Minister Naveen Patnaik, Union PNG and Steel Minister Dharmendra Pradhan, Odisha Industry Minister Dibya Shankar Mishra, IDCO Chairman Sanjay Kumar Singh, and IndianOil Chairman S M Vaidya.
The Chief Minister said Paradip Plastic Park is going to be a real game-changer for the downstream plastic industry. “This will boost the petrochemicals and plastic infrastructure as well as auxiliary industries and MSMEs in Odisha as well as Eastern India,” he added.
Union Minister Pradhan said, “Keeping the enterprise and employment generation potential of the plastic sector in mind, the Government of India has initiated the cluster development of the Industry through its plastic park scheme. Currently, six such parks have been approved with Paradip Plastic Park being one of them.”
Pradhan further added that Odisha would become the nerve centre of industrialisation through rapid development in petrochemical, chemical, polymer, textile and fibre sectors.
Delivering welcome address, IndianOil Chairman Shrikant Madhav Vaidya said, “IndianOil has made a significant investment of nearly Rs 41,000 crore in the last five to six years in Odisha to provide petrochemical feedstock, intermediates, and fuel for the Industry. In February 2019, IndianOil has commissioned its 680 KTA Polypropylene (PP) plant at Paradip with an investment of Rs.3100 crore. Another petrochemical feedstock project of ‘Mono Ethylene Glycol (MEG)’ is being constructed and is likely to be commissioned by the end of this year. A Product Application and Development Centre (PADC) at Paradip has also been established recently to enhance product quality, entrepreneurship, and self-reliance in petrochemical and plastics production in the region. IndianOil plans to set up an Integrated PX/PTA Plant with 1200 KTA capacity at Paradip. This plant, along with the MEG plant of 357 KTA capacity at Paradip, would be a ready source of feedstock for IndianOil’s upcoming 300 KTA textile yarn manufacturing project at Bhadrak and can similarly facilitate other textile and polyester projects in the region”.
As part of the MoU signing, IndianOil announced a special strategic incentive scheme to attract investments in downstream polymer industries at Paradip Plastic Park.
An incentive of Rs 2000/MT on Polypropylene granules from Paradip Refinery shall be offered to the manufacturing units located in the Paradip Plastic Park till March 31, 2030.
It is estimated that around 26 units will come up at the plastic and is likely to generate direct and indirect employment of 6,000.
