Petrochemicals &

Chemicals

Ecosystem in

Odisha

November 11, 2019

Odisha: The Land of New Opportunities

Odisha: Gateway to the ASEAN region

New Delhi

ChennaiBangalore

Mumbai

Kolkata

Hyderabad

Visakhapatnam

Bhubaneswar

Golden Quadrilateral

Road network

Gopalpur Port

Paradip Port

Dhamra Port

Visakhapatnam

Bhubaneswar

Gopalpur Industrial

park

Kolkata

National Highway 5

(Kolkata to Chennai)

East Coast Railway lane

Subarnarekha

Port (proposed)

State on a steady growth path

Sector 2000 2017

Infrastructure

Port Capacity (in MT) 20.5 190

Power Generation (in MW) 5.01 17,690

Road Network (in km) 16,041 26,843

Metals

Alumina (in MT) 0.8 5.78

Aluminium (in MT) 0.35 2.66

Steel (in MT) 2 22.9

Stainless Steel (in MT) 0 0.8

Significant growth in Infrastructure Capacity and Metals Production

3rd*

Position In Attracting

Live Investments

1st*

Position In Terms of

Investment

Implementation

*Associated Chambers of Commerce and Industry of India (ASSOCHAM), 2017

Odisha: Land of New Opportunities

Focus Sectors of Odisha: Emerging Sectors for the country

“State’s Vision is to attract Rs. 2.5 lakh crore of new investments in 6 identified focus

sectors and create 30 lakh job opportunities by 2025”

Odisha Industrial Development Plan: Vision 2025

Chemicals & Petrochemicals is

classified as a focus sector of

the state and is eligible for

special incentives as per the

Odisha Industrial Policy

Resolution, 2015.

Key Players

❑ IOCL PETROLEUM REFINERY

15 MMTPA Refinery

3345 Acres

34555 cr INR investment

❑ IFFCO FERTILISER PLANT

World’s largest phosphatic fertilizer

plant

❑ PARADEEP PHOSPHATES LTD.

0.72 MMTPA DAP production

0.66 MMTPA Sulphuric Acid Plant

0.225 MMTPA Phosphoric Acid Plant

Paradip Plastic Park:

❑ 120 Acres

❑ Plug-and- play Model

❑ Feedstock to be made available

from the IOCL Refinery

❑ Most advanced greenfield PCPIR of India

❑ Total Area: 284 sq.km

❑ Processing Area: 113 sq.km

❑ Anchor Tenant: Indian Oil Corporation Ltd.

IOCL- Existing infrastructure

❑ 15 MMTPA Refinery plant

commissioned in Feb 2016

❑ Will provide feedstock to the

downstream units including

Paradip Plastic Park

Paradip- The emerging Petrochemical Hub

Bhubaneswar

Paradip

Polypropylene

• 680 KTA Polypropylene plant with aninvestment of Rs 3150 Crores

• Time Schedule – Commissioned in 2019

Mono Ethylene Glycol

• 350 KTA MEG Plant with an investment ofRs 4000 Crores

• To be commissioned by 2021-22

• Intermediate for Polyester chips, fibers, PETbottle, PET chips, polyester yarn etc

Petcoke Gasification

• 770 KTA Pet-coke based synthetic ethanol project being considered by IOCL

• To be commissioned by 2024-25

Paraxylene-PTA Complex

• 1200 KTA Paraxylene-PTA complex

• In principle approval received

• To be commissioned by 2023-24

• Feedstock for PET Chips, packaging film, yarn and textile industries

Petrochemic

al Feed

stocks at

Paradeep

Petrochemic

al Feed

stocks-

Under Study

Petrochemical Feedstock Availability

Expansion Plans of IOCL

Refinery expansion

• Capacity: Expansion from 15 MMTPA to 25 MMTPA

• Commissioning: April 2025

Naphtha Cracker- 1

• Capacity:

• 1.4 MMTethylene and0.65 MMTpropylene

• Products: PP, HDPE, LLDPE, LDPE and EVA

Naphtha Cracker- 2

• Dual Feed Cracker

• Capacity:

• 0.9 MMT ethylene and 0.27 MMT propylene

• Products: HDPE, LLDPE and polyether polyols

PetcokeGasification

• Feedstock: high sulphur petcoke

• Products: Ammonia, hydrogen and sulphur

PX-PTA Project

• Feedstock: Reformate from existing CCRU

• Products: PTA (1200 KTA)

• Proposed total petrochemical production post expansion: 5890 KTA

• Proposed total employment:

• Direct: 3,886

• Indirect: 23,200

• Proposed total investment of IOCL: INR 1.53 lakh crores

Paradip Port:

❑ Deep draft, all weather port

❑ Largest port in the Eastern coast of the country

❑ Current Capacity: 277 MMTPA

❑ Largest bulk cargo port

❑ 4 berths for handling liquid cargo

❑ Dedicated pipeline corridor

❑ Currently, the port is enabled to handle Cape

Size vessels of LOA 300 mtrs, Beam 48 mtrs,

DWT of 1,18,000 with a maximum draft of 14.5 m

Paradip Port- Premier Maritime Gateway on the East Coast

Existing Infrastructure:

❑ Mechanised Coal Handling

Plant

❑ Iron Ore Handling Plant

❑ General Cargo Berth

❑ Oil Jetty

❑ Captive Berths

❑ RO-RO Jetty

❑ Container Handling

❑ Cargo Handling Equipments

❑ Port Railways

❑ Storage

Expansion plans :

❑ Capacity : 325 MMT by

2020

❑ Vessel Size : 2,00,000

DWT

❑ Draft : 22 m

Location:

❑ 210 Nm south of Haldia

port

❑ 50 Nm south of Dhamra

port

Paradip Plastics Park

• Project Approved by Department of Chemicals & Petrochemicals, Government of India

under Scheme for Plastic Parks

• World -class common facilities spreads over an area of 120 acres

• Committed supply of Polypropylene by IOCL

Railway Station

2.5

km

s

NH 5A

Paradeep Port

IOCL Township

ParadeepPlastic Park

Proposed Cracker & Aromatics Complex by Haldia Petrochemicals

• Crude to chemicals complex

• Proposed total petrochemical production post expansion: 10,500 KTA

• Proposed total investment of HPL: INR 77,000 crores

• Proposed total employment:

• Direct: 1,500

• Indirect: 3,000

Cracker Complex

• Refining of light crude and steam cracker facility to produce propylene and ethylene byproducts

• Products: PP, HDPE, MEG, PVC, Phenol, Acetone, Butadiene, Benzene, Heavy naphtha, LPG, Pyrolysis Gasoline, CBFS

Aromatics Complex

• Aromatics Block uses naphtha produced during refining and imported naphtha to produce PX and PTA/PET through PTA complex and PET complex and other related products

• Products: PET, PTA, Benzene, PX, Fuel Oil

Bhubaneswar

Subarnarekha

Port

Competitive Cost of Doing Business- Manufacturing Hub of the East

1.36

1.11

1.5

1

1.67

1.55

1.77

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Industrial Power Tariff (with base as 1)

27.02

23.3325.57

22.07

28.63 25.6

24.28

0

5

10

15

20

25

30

35

AndhraPradesh

Gujarat Karnataka Odisha Maharashtra Rajasthan UttarPradesh

Consumer Price Index0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6

Uttar Pradesh

Rajasthan

Maharashtra

Odisha

Karnataka

Gujarat

Andhra Pradesh

1.53

1

1.47

1.15

1.27

1.4

1.36

Minimum Wage Rate of Skilled Labor (with base as 1)

Government of Odisha – Single Window for Investor Facilitation & Tracking (GO SWIFT) is a one-stop solution for all required

services by an investor during the investment life cycle of a project

First-of-its kind Single Window Portal

Incentives for Focus Sector Industries#

Incentive Description

Land Concessional industrial rates

Stamp Duty Nil

Interest Subsidy 5% p.a. for 5 years of the term loan availed from Public Financial Institutions / Banks upto

Rs. 1 crore

Energy Charges Exemption of electricity duty upto a contract demand of 5 MVA for 5 years

VAT* 100% VAT reimbursement for 7 years from the date of production on the net tax paid, cap of

200% of cost of plant and machinery

Employment Cost Subsidy 100% reimbursement of expenditure on account of contribution towards ESI & EPF scheme for 3

years for skilled & semiskilled workers who are domicile of the State & who have been displaced

because of the establishment of the unit

Power Tariff

Reimbursement

Re. 0.25 – Rs.1 per unit based on employment no.s

Training Subsidy

reimbursement

One time payment of Rs. 1750 – Rs. 4000 per person for a period of 3 years based on

employment numbers

Capital Subsidy on P&M 10% of investment upto a cap of Rs.50 crores (for P&M in plastics and technical textiles)

# Incentives as per Industrial Policy, 2015

* Under revision

** Odisha Skill Development Authority - Dedicated authority to facilitate skill

development to suit needs of industries**

❑ 1,78,404 technical manpower graduating

every year from 956 training institutions in

Odisha

❑ 2nd most employable engineers in the country

❑ Globally recognized Institutes of Higher

Learning & Research including ICT, IIT, IIM,

AIIMS, NIT, XIMB, CIPET etc.

❑ Bhubaneswar, the State Capital, is a

emerging knowledge hub in India

❑ Central Institute of Plastics Engineering

and Technology at Bhubaneswar- Research

institute in Plastics; One of the biggest CIPET

centres in the country

“Skilled in Odisha” – Large pool of Trained Workforce

Welcome to Odisha!

► Asia’s largest brackish water lake

► A Ramsar Convention site with rich bio-

diversity

Chilika Lake

► Nesting beach for the endangered Olive Ridley

Sea Turtles

► 1435 sq. KMs area- one of the world’s largest

rookery of Olive Ridley Sea Turtles

• 2nd largest mangrove ecosystem in Asia

• Home to the endangered salt water

crocodile

Gahirmatha Marine Sanctuary

Bhitarkanika National ParkSun Temple , Konark

► 13th century architecture with high

chariot, wheels and horses- all carved

from stone

Puri Beach

► Site of the annual Puri Beach Festival held by

Indian Ministry of Tourism

Bhubaneswar Golf Club

► Premier Golf Club at Bhubaneswar

THANK YOU