Odisha has cleared a Rs 782.25 billion investment proposal by Haldia Petrochemicals Ltd towards a hydrocarbon processing complex in Balasore, an official in the state’s industry department said. The state’s single window system cleared the proposal. It will be given a go-ahead by the state’s High-Level Committee chaired by Chief Minister Naveen Patnaik soon.
The project, which comprises a light crude refinery, aromatic complex and ethylene crackers complex, is an enhanced investment commitment from HPL, whose initial proposal of Rs 287 billion was cleared in March. “HPL had come back to the state on its own with a comprehensive and enhanced investment proposal,” the industry department official said.
The project, an endorsement for Naveen Patnaik’s Make in Odisha effort, includes a 1.080 polyethylene unit, a 1.6 mtpa unit of paraxylene, and 1.25 mtpa of purified terephthalic acid (PTA).
Odisha expects Haldia to anchor downstream processing industries, as the company has done in its plant in East Midnapur, in West Bengal. HPL will work with the state government to develop downstream units and an ecosystem in the region.
“It has been agreed to make adequate quantities of ethylene and propylene, and C4 streams such as Butene-1 and butene-2 shall be made available for downstream units. Common utilities such as steam, compressed air, industrial gasses, power, etc shall also be made available to downstream players,” said the official.
HPL has also promised to rope in “a global oil and petrochemicals company as a strategic partner who will provide the feedstock supply security and be an equity partner.” The project cost of the first phase is pegged at Rs 529 billion, with Rs 158.86 billion as equity and Rs 370.14 billion in debt.
Odisha Industrial Infrastructure Development Corporation (OIIDCO) has identified 2391.82 acres of land in Balasore, near the upcoming Subarnarekha port that is being developed by Tata Steel. About 900 acres of this is forest land and 300 acres is held privately.
