The state cabinet has approved an incentive proposal of Indian Oil Corporation Limited (IOCL) to set up a mega Dual Feed Cracker unit at Paradip in Odisha.
The state government will be an equity holder in the company after this incentive scheme. The equity share will be worked out soon. Meanwhile, the government recommended an SPV to be floated for the purpose, in which the state government will be a partner. The state government’s equity in the SPV will be proportionate to the land cost for the project, which the state will provide for the equity share. The state government will provide 2,200 acres of land for the mega dual feed cracker (DFC) of IOCL.
However, the state government will soon sign an MoU with the IOCL for formation of the SPV.
IOCL has proposed to set up a mega Dual Feed Cracker (DFC) at Paradip with investment of Rs 58,042 crore for production ethylene, poly propylene, poly vinyi chloride (PVC), phenol, iso-propyl alcohol (IPA) for total capacity of 2822 KTA. IOCL also requested for a specific incentive package to improve the viability of the project. A High-Level Committee recommended the same to the Cabinet after examining the incentive proposal taking into account the benefits to the state.
The Dual Feed Cracker will enable significant industrial development in various downstream industries like plastic, pharma, API, agro chemical, personal care products (FMCG), speciality chemicals, paints and packaging materials. These downstream industries in MSME sector will create large employment opportunities with enhanced economic activity in the state.
