Bhubaneswar, March 6 (LocalWire): The Odisha government on Tuesday approved a proposal of Haldia Petrochemicals Ltd (HPL) to set up an integrated refinery in Balasore district at a cost of Rs. 28,700 crores ($4.05 billion).
The High Level Clearance Authority (HLCA) headed by Chief Minister Naveen Patnaik gave its nod three days after the Bengal-based company submitted its proposal.
HPL plans to set up a refinery for production of Paraxylene and Purified Terepthalic Acid (PTA) near the upcoming Subarnarekha Port of the district.
About 2000 acres of land will be allotted to the company after an assessment of the Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL).
The company had first stated its intent of making the investment at the Make in Odisha Conclave 2018, the biennial global investors’ meet held in November last year.
The foundation stone of the port, being built by Tata Steel in collaboration with the state government, was laid last month by the chief minister.
PTA is used for making polyester fibers and polyethyl terephthalate (PET), which are used by medium and small scale enterprises to make garments, food packaging applications etc.
Currently, the entire eastern India and countries like Bangladesh are dependent on sourcing polyester fibers from the western part of the country to meet the clothing demand of the region.
Therefore, it is envisaged that setting up PTA unit will trigger investment in these products and will catalyze growth of further downstream processing units along the value chain.
Since the total polyester chain starting from spinning to garmenting is a labour-intensive process, it is estimated that direct and indirect employment generation potential of the project is about one lakh people.
Haldia Petrochemicals Ltd is one of the largest petrochemical companies in India, incorporated in September 1985. The factory complex of HPL is located at Haldia in West Bengal and the first commercial production of this complex started in 2001.
In addition to Haldia Petrochemicals, the HLCA also approved the proposal of Indian Oil Corporation Limited to set up a polyester products manufacturing unit of 300 KTPA capacity at the textiles park coming up at Bhadrak district at an investment of Rs.1,970.52 crores.
The HLCA also approved two proposals of Rungta Mines Limited. The first proposal was for the expansion of its sponge iron plant to an integrated steel plant at Karakolha in Keonjhar district. The expansion would entail investment of Rs. 1,677.98 crore.