Bhubaneswar: Odisha Chief Minister Mohan Charan Majhi is set to sign a significant Memorandum of Understanding (MoU) with Indian Oil Corporation Ltd (IOCL) in New Delhi on the second day of his strategic visit on Tuesday.
The pact will pave the way for India’s largest dual-feed naphtha cracker project to be built at Paradip in Jagatsinghpur district of Odisha with an investment of Rs 61,000 crore, officials said.
Finalised during a December 2024 meeting between the Chief Minister and IOCL Chairman Arvind Singh Sahney, the project received in-principle state approval as part of IOCL’s Rs 1,00,300 crore investment plan.
The investment proposals included expansion of its Paradip refinery – from 15 million tonne per annum (MTPA) to 25 MTPA besides the naphtha cracker unit.
The naphtha unit is likely to be one of the largest projects in the sector in the country. The state government is an equity holder in the project and will earn dividend in addition to taxes.
Stated to be the largest of its kind in this sector in India, the project is expected to enhance domestic polymer production, reduce import dependency, and create thousands of jobs.
Besides the pact with IOCL, MoUs with Indian Strategic Petroleum Reserves Ltd (ISPRL) and Petronet LNG will also be signed on Tuesday to strengthen energy infrastructure. The CM will also meet industry leaders to discuss cross-sector investments.