Indian Oil Corporation (IOC), the country's largest oil refiner, has announced a massive investment of Rs 61,077 crore (over $7.3 billion) to establish a state-of-the-art petrochemical complex in Paradip, Odisha. It will cater to India's increasing demand for petrochemicals, which is projected to surge from the current 30-35 million tonnes to a staggering 80 million tonnes by 2040. 

The agreement for this mega project was formalized through a Memorandum of Understanding (MoU) signed between IOC and the Odisha government at the Odisha Investors’ Meet held in New Delhi on Tuesday, April 8. This investment marks IOC's largest-ever commitment at a single location.

The new petrochemical complex will be integrated with IOC's existing 15 million tonnes per annum oil refinery in Paradip, which will serve as a crucial feedstock supplier. The complex will feature a dual-feed cracker and various downstream units designed to produce a wide array of essential petrochemicals like phenol, polypropylene (PP), isopropyl alcohol (IPA), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), and polyvinyl chloride (PVC). These products are vital raw materials for plastics, textiles, pharmaceuticals, agrochemicals, coatings, and adhesives industry. The project is anticipated to be commissioned by 2029.

Highlighting the significance of this investment, IOC Chairman AS Sahney stated that the Paradip petrochemical complex will be a "game-changer, catalysing industrial growth and self-sufficiency in the entire eastern region." He further emphasized that the project is expected to save over Rs 30,000 crore annually in foreign exchange by substituting imports in the chemicals and petrochemicals sector, thereby bolstering India's economic resilience.

Union Minister for Education and Member of Parliament from Odisha, Dharmendra Pradhan, who previously held the petroleum ministry, noted that with petroleum sector investments exceeding Rs 2.04 lakh crore in the last decade, Odisha is rapidly emerging as a pivotal hub for energy transition in the world. Odisha Chief Minister Mohan Charan Majhi echoed this sentiment, stating that the petrochemical project will be instrumental in driving industrial growth and generating substantial employment opportunities in the state.

In addition to IOC's mega investment, other significant projects were also announced. Petronet LNG Ltd., India's largest importer of liquefied natural gas, will invest Rs 6,500 crore to establish its maiden land-based LNG import terminal on the east coast at Gopalpur Port. This 5 million tonnes per annum capacity terminal marks a shift from Petronet's earlier plans for a floating storage and regasification unit (FSRU) due to the availability of suitable land.

Furthermore, Indian Strategic Petroleum Reserves Ltd. (ISPRL) will invest Rs 8,743 crore to develop a 4-million-tonne underground oil storage facility in Chandikhol.