Indian Oil Corporation Limited (IOCL) entered into a Memorandum of Understanding (MOU) with Odisha Industrial Infrastructure Development Corporation (IDCO) to develop Paradip Plastic Park.
Under the MoU, to attract investments in downstream polymer industries at Paradip Plastic Park, IOCL announced a Special Strategic Incentives scheme.
An incentive of Rs 2000/MT ($27.48/MT) on Polypropylene granules from Paradip Refinery shall be offered to the manufacturing units located in the Paradip Plastic Park till March 31, 2030.
As per the MoU, it is estimated that around 26 units will come up at the plastic Park with an estimated investment of Rs 5 billion ($68.7 million) and is likely to generate direct and indirect employment of 6,000.
Minister of Petroleum & Natural Gas and Steel, Dharmendra Pradhan said, “Keeping the enterprise and employment generation potential of the plastic sector in mind, Government of India has initiated the cluster development of the Industry through its Plastic Park scheme. Currently, six such parks have been approved by the Government of India, with Paradip Plastic Park being one of them,” adding that Odisha would become the nerve centre of industrialisation through rapid development in petrochemical, chemical, polymer, textile and fibre sectors.
With a project cost of Rs 1.07 billion ($14.7 million), the park is spread over 120 acre of land and it is close to a national highway, a railway station and a port.
This project falls under the larger Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) at Paradip, a release issued by the Chief Minister’s Office said.
Being the ‘Anchor Tenant’ in PCPIR with its Refinery & Petrochemical Complex, IOCL has now joined hands with IDCO for development of this project with 49% share, it said.