IOCL is planning to pump in an additional Rs 15,000 crore to scale up refinery capacity to up to 25 million tonnes per annum (mtpa). That apart, it has committed an investment of Rs 4,050 crore to upgrade the refinery to roll out products that can meet BS-VI emission norms.
The oil major was provided over 3,300 acres of land for the crude oil refinery where it has already invested Rs 35,000 crore. The company has pledged to invest Rs 51,779 crore more. The crude oil refinery, petrochemical complex and investment on different pipelines make IOCL the biggest investor in Odisha.
The first petrochemical unit of IOCL- the polypropylene complex where IOCL is investing Rs 3,150 crore is under construction and is expected to be operational within one year. The oil marketing company has also got the in-principle approval of its board to set up a second unit- the mono ethylene glycol plant at a cost of Rs 3,800 crore.
Two more projects have been planned for the petrochemical complex- 1200 ktpa purified terephthalic acid (PTA) plant and petcoke gasification based synthetic ethanol plant. Both these projects would together cost IOCL Rs 28,000 crore and are due to be commissioned by September 2021.
With the availability of mono ethylene glycol (MEG) and PTA from these units, downstream industries like polyester chips, fibers, PET (polyethylene terephthalate) grade chips, PET film grade chips and polyester industrial yarn can be developed.
Under its BS-VI project, IOCL would set up isomerisation unit, FCC (Fluid Catalytic Cracking) gasoline desulphurisation unit, hydrogen unit and kerosene desulphurisation units.