Indian Oil Board gives go-ahead for companys Rs 13,805 crore PX-PTA complex

Indian Oil Corporation announced today that the company’s board had approved the implementation of an Integrated Para-Xylene (PX) and Purified Terephthalic Acid (PTA) complex project at Paradip, Odisha, at an estimated investment of Rs 13,805 crore. The PX-PTA complex is estimated to be completed by 2024 and will be integrated with the company’s Paradip Refinery which is operational since 2015.

The proposed petrochemicals complex will have a PX production capacity of 800,000 tonnes per annum, which would be the feedstock for the production of PTA. The production capacity of PTA would be 1,200,000 tonnes per annum.

PTA is a major raw material for the manufacture of polyester fibre, PET bottles and polyester film used in packaging applications. PTA and MEG combined are the main feedstocks for polyester manufacture.

The availability of both PTA and MEG at Paradip will be a boost to polyester manufacturing facilities in the vicinity. Post the commissioning of both PTA and MEG projects, the Petrochemical Intensity Index of the Paradip Refinery will increase to 14.7 from the present level of 4.5.

Speaking on the announcement, Mr SM Vaidya, Chairman of IndianOil stated that the plant, along with the upcoming MEG (Mono-Ethylene Glycol) plant of 357-KTA (kilo tonnes per annum) capacity at Paradip, would be a ready source of feedstock for IndianOil’s upcoming 300-KTA textile yarn manufacturing project at Bhadrak in Odisha, and can similarly facilitate other textile and polyester projects in the region.

On Friday, the stock of Indian Oil Corporation closed flat at Rs 88.55 per share. The 52-week high is recorded at Rs 156 and the 52-week low is Rs 71.15 on BSE.