Mega projects worth of Rs. 11000 crores to be unveiled at Paradip by Dharmendra Pradhan, Nitin Gadkari, Jual Oram on 6th Feb

Bhubaneswar: Series of mega projects of IndianOil and Paradip Port Trust are going to be unveiled on 6th February 2019 at Paradip. Minister for Tribal Affairs, Govt. of India Shri Jual Oram, Minister for Petroleum and Natural Gas and Skill Development and Entrepreneurship, Govt. of India Shri Dharmendra Pradhan and Union Minister for Road Transport & Highways, Shipping and Water Resources, River Development & Ganga Rejuvenation Shri Nitin Gadkari are slated to be present at the occasion. A joint press meet held by IOCL and Paradip Port Trust today in Bhubaneswar was addressed by Shri Rinkesh Roy, IRTS, Chairman, Paradip Port Trust, Shri TDVS Gopalkrishna, Executive Director, IOCL, Paradip Refinery, Shri Pritish Bharat, SLC, Oil Industries and ED, IOCL, Shri Sujoy Choudhury, CGM (Petrochemical –Marketing), IOCL, and Shri S Pattnaik, CGM, HR, SERPL, IOCL are slated to address the press meet.

Indian Oil Corporation’s state-of-the-art 15-MMTPA Paradip Refinery, dedicated to the nation by the Hon’ble Prime Minister of India in February 2016, takes a leap forward with mega projects being unveiled in petrochemicals and LPG.

With these significant beginnings, the industrial development of the region and the State of Odisha, which has already been at a frenetic pace with the mega projects envisaged and executed under the aegis of the Ministry of Petroleum & Natural Gas, Govt. of India, will gain additional momentum.

Paradip Refinery is playing a catalytic role in the industrial and economic development of the region and the State of Odisha. To draw full advantage of the growth ushered in by the Paradip Refinery, and to enlarge its bouquet of value-added petro products, several petrochemical projects have been envisaged at Paradip that will serve to strengthen industrial activity in the region.

Inauguration of Polypropylene (PP) Plant at Paradip Refinery

Built at an investment of Rs. 3,150 crore, the 680-KTA Polypropylene (PP) Plant at Paradip Refinery, will increase IndianOil’s petrochemicals capacity to 3.15 MMTPA, with many other projects to follow. It will also considerably reduce import of polypropylene grades, thereby saving foreign exchange for the exchequer.

The PP Plant shall act as the mother unit in nurturing the downstream plastics processing industry in the region. PP-based downstream industries include Injection Moulding Products, BOPP Film, TQPP Film, Raffia, Fibre & Filament and Thermoforming. These grades find wide use in the making of furniture, houseware, material handling crates, flexible packaging, general purpose packaging, textile packaging, adhesive tapes, cement and fertilizer bags, food grain & sugar packaging, shopping bags, straps & ropes, medical disposable packaging material, disposable cups, containers, etc.

Foundation stone-laying for Monoethylene Glycol Plant at Paradip Refinery

A 357-KTA Monoethylene Glycol (MEG) Plant is also being set up at Paradip Refinery at an estimated cost of Rs. 5,654 crore. Ethylene Glycol is extensively used in the manufacture of items like polyester fibre, bottle & film grade chips, solvents, coolant, textiles, packaging, PET film, sheet and molded containers for food packaging, which have a sustained industrial demand.

The project is being envisaged as a key driver for the growing textiles industry in the region and will cater to the increasing demand for polyester fibre. With a textiles park proposed at Bhadrak, Odisha, there will be abundant opportunity to create synergy by supplying raw material to the downstream textile industries.

Based on the yarn/fibres produced from the textiles park at Bhadrak, several downstream industries such as spinning, weaving/knitting, processors and garments, etc., shall also come up in the region. Based on estimation, about Rs. 2,000 crore will be invested in the downstream units, generating large-scale employment. At present, nearly 26% of the total demand for textiles/apparels in the eastern region is being met by supplies from the western part of India.

Commencement of work on LPG Import Terminal

To augment LPG import infrastructure at Paradip, IndianOil has planned to set up new 0.6 MMTPA capacity LPG Import Terminal at an estimated cost of Rs. 690 crore.

Paradip is one of the best ports on the east coast of India with very high draft for large-size LPG carriers (tanker-ships). Therefore, the project is planned within the existing LPG marketing terminal at Paradip, which will also store and further distribute LPG produced at IndianOil’s Paradip Refinery.

The proposed LPG Import Terminal will receive butane & propane through large sea vessels at South Oil Jetty, from where they will be transferred through underground pipelines and stored in mounded-type storage vessels. LPG produced by blending butane & propane will be dispatched to various locations in Odisha and other neighbouring States by road in tank-trucks and by pipeline (PHDPL).

LPG is a deficit product in India with almost 47% of the demand met through imports, which is likely to further increase in the near future. The LPG coverage in Odisha as on 01.01.2019 is 67.9% against the country penetration of 89.9% and that of eastern region at 75.7%. To meet the LPG demand of eastern region, only one import facility is available at Haldia, which is inadequate for handling larger LPG import parcels in view of draft constraints.

The coming up of LPG Import Terminal at Paradip is imperative for enhanced penetration of LPG cooking gas in the eastern region. With increased availability of LPG at Paradip through imports, LPG can then be moved through the Paradip-Haldia-Durgapur-Barauni-Patna-Muzaffarpur pipeline to LPG bottling plants in Odisha, West Bengal, Bihar, Chhatisgarh and the Northeast.

Increased availability of LPG shall bring down dependence on firewood and cow dung, thereby reducing indoor air pollution and improving the health of rural India, fulfilling the vision of Pradhan Mantri Ujjwala Yojana.

Inauguration/Dedication of following Projects

Multipurpose Berth to handle clean cargo including containers on BOT basis at Paradip Port
Paradip Port has developed a Multipurpose Berth on BOT basis at its Southern side for handling clean cargo, including containers, and for diversifying its cargo profile, which hitherto comprised predominantly of bulk cargo like iron ore & coal.

This Clean Cargo/Container Berth will cater to the needs of the containerised traffic and finished products arising out of rapid industrialisation in Odisha and other States of the port’s hinterland. The capacity of the terminal is 5 MMTPA and the estimated cost of the project is Rs.430.78 crores.

Dust Suppression System at MCHP
PPT handles about 25 MT thermal coal in the mechanized coal handling plant, which are discharged into in the Rail Receival Station generating dust. As such, the challenges faced with the fugitive dust generation have been tackled through a customized contentment and dual fluid dust suppression technique. This technique generates ultra-fine water droplets in the form of dry fog which moistens and agglomerates like-sized dust particles in the form of dust plumes making it heavy to fall back on to the parent material. This project has been completed at a cost of Rs.17.50 crores.


Paradip Railway Station Building & Atharabanki RRI
The Railway Station building forms a part of the upgradation of Railway Infrastructure for evacuation/ receipt, both inside the Port and the exchange yard. It provides adequate space to accommodate railway area control office, freight operation information system office, area manager office, crew lobby, Port area control office and other allied facilities for improvement and efficient operation and better planning and coordination between Port and Railway officials.

The Atharabanki RRI provides centralized operation of points and signals at PPT end of exchange yard/PRDP up to Atharabanki controlling nearly 35 points of PPT to avoid manual setting of points for smooth rake operations.
The overall cost of the above project is Rs.15 crores.

Foundation stone laying for following projects

Mechanization of EQ-1, 2, 3 berths at Paradip Port on BOT basis
The existing East Quay (EQ) of Paradip Port of 686 m is presently operational through semi-mechanized means in which cargo is handled through mobile harbour cranes or the ship’s own gear. Paradip Port Trust has taken up mechanization of EQ berths to enhance their capacity to 30 MMTPA, enabling cargo handling of thermal coal exports in an eco-friendly manner through fully mechanized closed conveyor system. The estimated cost of the project is Rs.1,437.76 crores.

Development of new coal berth for handling of coal imports at Paradip Port on BOT basis
This is a green field project which envisages development of a new berth for handling coal imports at Paradip Port of 10 MMTPA capacity, fully mechanized with facilities like unloading from ships, stacking, reclaiming and rapid wagon loading to be carried out through closed conveyor system enabling the cargo to be handled in eco-friendly manner. The estimated cost of the project is Rs.655.56 crores.

Connectivity of IOHP to MCHP at PPT
This is a project for transfer of thermal coal received through BOXN wagons from Iron Ore Handling Plant (IOHP) to Mechanized Coal Handling Plant (MCHP) stockyard by optimization of capacity of Wagon Tippler of IOHP thereby giving flexibility for inter plant cargo handling and supplementing capacity of MCHP. The estimated cost of the project is Rs.66.47 crores.

Installation of Container Scanner at PPT
PPT has recently commissioned a Container/ Clean Cargo Terminal of 5 MMTPA. The Container Scanner has been installed adjacent to the Container Terminal for inspecting containers for export and import purpose. The throughout is up to 25 trucks per hour in scan mode and up to 100 trucks per hour in pass through mode. The Scanner provides high performance imaging capability with organic/inorganic material discrimination and colorization. The estimated cost of the project is Rs.40 crores.

2nd Exit from Paradip with flyover
A 2nd exit from PPT including flyover has been proposed as part of SIPC project to reduce traffic inside city area. This project shall provide improved Port connectivity from National Highway besides serving as the second exit route. The estimated cost of the project is Rs.94 crores.
Multi Modal Logistics Park at Paradip port
The MMLP is being developed an estimated cost of Rs.200 crores over an area of 100 acres. The warehouse complex under MMLP is being developed by CONCOR and would be to the tune of 11 lakh sq.ft.. and would generate employment potential in the areas of warehouse management/ logistic operations.

Petrochemicals sector scenario
The petrochemicals sector is crucial for economic development as it provides universal products and enabling solutions to all the other sectors.

The growth potential of petrochemicals in India is tremendous, considering that the country’s per capita polymers consumption is only about 10 kg, which is far below the global average of 35 kg, USA’s 90 kg and China’s 46 kg. The Government of India’s slew of progressive schemes will also have a multiplier effect on the demand for petrochemicals. The ‘Make in India’ programme is expected to give a big boost to the manufacturing sector, and with the increased focus on infrastructure, agriculture and irrigation, the demand for plastics is likely to spiral upwards.

The consumption of petrochemical products in India is currently growing at one-and-a-half times that of its Gross Domestic Product (GDP). With the steady upward growth trajectory of the country, it is expected that petrochemical products growth shall be in double digits in the coming years.

In its quest to be future-ready, IndianOil has made major strides in petrochemicals business, with its business model moving from the stand-alone refineries to integrated refinery-cum-petrochemical complexes to ensure profitability.

IndianOil is the second largest petrochemicals producer in India, at about 2.5 MMTPA, comprising Linear Alkyl Benzene (LAB), Purified Terephthalic Acid (PTA), Polyethylene, Polypropylene, Ethylene Glycols, Styrene Butadiene Rubber, etc., at its refineries in Panipat and Vadodara.

IndianOil’s Panipat Refinery Complex in Haryana has set global benchmarks in the manufacture of petrochemical products; on the same lines, IndianOil’s Paradip Refinery is also transforming into an integrated refinery-cum-petrochemicals complex by setting up Polypropylene, Ethylene Glycol and PX-PTA plants. Similar plants operating successfully at Panipat Refinery Complex are yielding rich dividends.

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