By Bizodisha Bureau, Bhubaneswar, November 16, 2017: Petrochemicals sector and ancillary industry is all set to rev up with the state-run Indian Oil Corporation Ltd (IOCL) on Thursday signing two memoranda of understanding (MoUs) to set up a plastic park and textile park in Odisha.

The MoUs were signed at the Petrochemical Investors Conclave, the first-of-its-kind to attract investments to eastern India, inaugurated by union petroleum minister Dharmendra Pradhan here.

IOCL and Industrial Development Corporation of Odisha (Idco) signed a MoU to collaborate in the setting up of a Plastics Park at Paradip.

Indian Oil is setting up a 700 KTA (kilo tonnes per annum) Polypropylene unit at Paradip Refinery, to be commissioned in 2018, to serve as a mother plant for downstream polymer or plastics ancillary units.

Indian Oil signed another MoU with MCPI Ltd for setting up a Textiles Park.

Pradhan said, with the coming up of an MEG (Mono Ethylene Glycol) Unit at Paradip Refinery and availability of PTA (Purified Terephthalic Acid) in the East, the polyester downstream industry can flourish very well in eastern region.

“By achieving synergy of cotton fibre with polyester fibre to promote and popularise synthetic textiles, the Textiles Park will majourly benefit Micro, Small and Medium Enterprises (MSMEs), with employment potential of up 22 lakhs,” he added.

India’s petrochemicals sector is going through a golden period, with growth rates of 14-15 per cent per annum.

“Odisha, with ready availability of raw material, skilled, low-cost manpower, port infrastructure and rail connectivity and a large regional market, must fully utilise the opportunity to create investment opportunities in the downstream plastics park and textiles park being developed in the state,” he said.

Highlighting the developmental vision of Prime Minister Narendra Modi for eastern India, he said that accelerated development of eastern states is one of the top priorities of the Indian government.

While the per capita consumption of plastics in India is only 10 kg as compared to the world average of 32 kg, it is much lower at 5 kg in eastern India, he added.

Pradhan hoped that the conclave, with the theme “Purvodaya – The Dawn of New Investment Opportunities in Eastern India”, would serve as an effective platform for young investors to interact with business leaders of the petrochemicals industry, government functionaries, financial institutions, supply chain professionals as well as incubators in the academia at one place.

He also inaugurated an exhibition set up at the conclave venue.

The exhibition, with over 35 exhibitors, focussed on how the petrochemicals sector caters to a number of other sectors, by providing raw material for clothing, housing, construction, furniture, automobiles, household items, toys, agriculture, horticulture, irrigation and packaging to medical appliances.

Also present on the occasion was Odisha Finance Minister Shashi Bhusan Behera who said that the state is attracting large investments in energy, mineral and manufacturing sectors.

With the state government according high priority to petrochemicals sector, Indian Oil, as anchor tenant, will have a lead role to play in developing a PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) in Paradip, he said.

Odisha Micro, Small and Medium Enterprises Minister Prafulla Samal said that the state government is according top priority to development of Paradip, Dhamra and Bhadrak regions.

Indian Oil’s Polypropylene unit coming up at Paradip will help boost the growth of plastics industry in the state and also raise the state’s per capita consumption of plastics, he added.