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Govt to ink fresh MoU with IOCL for downstream project


Reported by Chinmaya Dehury/Edited by Swetaparna Mohanty

Bhubaneswar, Oct 16:

With Indian Oil Corporation Ltd (IOCL) not too keen on setting up a downstream petrochemical complex (DPC) at the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) in Paradip, the Odisha government has decided to sign a fresh memorandum of understanding (MoU) with the company to fix a firm timeline to set up the downstream project.

“The state government is seriously concerned about IOCL’s lack of commitment for development of DPC at Paradip and hence has advised to renegotiate a fresh MoU fixing firm timelines with the central PSU for development of DPC,” said an official of the Industry department.

A meeting was held recently between officials of IPICOL, IDCO and IOCL, where it was decided to fix firm timeline for setting up of the project.

The official informed that even though several meetings were held in between, the company never gave a firm commitment on setting up of the downstream project.

It is to be noted that chief minister Naveen Patnaik, who also happens to be Water Resources minister, had asked for a firm timeline for the DPC project after which the water allocation could be considered.

IOCL, the anchor tenant for the project, had committed to set up a 15 million tonne refinery and petrochemicals complex at Paradip at an estimated cost of Rs 55,000 crore.

The PCPIR project in the state would be set up on 284.15 sq km (70,214 acres) of land spread over Jagatsinghpur and Kendrapara districts. The PCPIR hub is expected to attract investments to the tune of Rs 2.74 lakh crore.