Union Petroleum Minister Inaugurates Textiles & Plastics Conclave at Surat
New Delhi 02-Sep-2018
Shri Dharmendra Pradhan, Hon'ble Union Minister of Petroleum and Natural Gas,
Skill development and Entrepreneurship, releasing the Knowledge Paper
on Purbodaya : Unfolding Mega Opportunities in Textiles & Plastics Downstream
Sectors in Odisha, in the presence of Shri Pradipsinh Jadeja, Minister
of State for Home, Law and Justice, Energy and Parliamentary Affairs, Govt. of Gujarat;
Shri Sanjiv Singh, Chairman, IndianOil, Shri Sandeep Poundrik, JS (Refineries),
MoP&NG, Smt. Aparna Sharma, JS (DCPC), and other dignitariesduring the inaugural session
of Textiles & Plastics Investors Conclave at Surat today.
Event Highlights Mega Opportunities in Textiles & Plastics Downstream Sectors in Odisha
In a move aimed at drawing investments into the State of Odisha and for forging equitable growth across the country, Shri Dharmendra Pradhan, Union Minister for Petroleum and Natural Gas, Skill Development & Entrepreneurship; inaugurated the first-of-its-kind Textiles and Plastics Investors Conclave here today in the presence of Shri Pradipsinh Jadeja, Minister of State for Home, Law & Justice, Energy and Parliamentary Affairs, Govt of Gujarat. Shri Sanjiv Singh, Chairman, IndianOil; Shri Avinash Joshi, MD, ONGC Petro additions Ltd. (OPAL); Shri Sandeep Poundrik, Jt. Secretary (Refining), MOP&NG; Ms. Aparna Sharma, Jt. Secretary, Deptt. Of Chemicals & Petrochemicals, were also present on the occasion.
About 1000 delegates attended the Conclave, organised by Indian Oil Corporation Ltd. (IndianOil), under the aegis of the Ministry of Petroleum & Natural Gas, Government of India, in association with OPAL, was based on the theme "Purbodaya: Unfolding Mega Opportunities in Textiles & Plastics Downstream Sectors in Odisha."
Projecting Odisha as a sound investment destination, Shri Dharmendra Pradhan credited Hon'ble Prime Minister for Purbodaya and said, "Odisha has immense potential for the growth of the plastics and textiles sectors with convenient access to all the primary raw material needed. The region also has the necessary infrastructure, including ports, railway connectivity and road networks alongwith low-cost labour, that will facilitate the speedy development of the two sectors. Odisha presents a whole lot of possibilities and opportunities in the textiles and plastics industry with IndianOil providing the raw materials." Urging investors to invest in Odisha, he added, "Craftsmanship & finesse are synonymous with the people of Odisha as entrepreneurship & business acumen is to the people of Surat. Therefore, it makes sense to showcase opportunities for investment in Odisha at Surat."
Speaking on the occasion, Shri Pradipsinh Jadeja said, "Gujarat is the hub for both petrochemicals and textiles industries. The entrepreneurial spirit of the people of Surat has developed the city into a thriving economy based on textile & various other industrial clusters. The Investors Conclave will highlight the emerging investment opportunities in the downstream petrochemicals sector in Odisha and facilitate investments in the proposed Textiles and Plastics Parks in the eastern state of Odisha.
Speaking on the occasion, Chairman, IndianOil, Shri Sanjiv Singh, said, "IndianOil has invested Rs. 35,000 crore in Paradip Refinery. A new polypropylene unit of 700 KTA (kilo tonnes per annum) capacity is getting ready at the Paradip Refinery complex to support the plastics industry. Estimated to cost Rs. 3,150 crore, the plant is getting ready to be commissioned by the end of this year. We are also planning to set up an integrated PX/PTA Plant and a Glycols Plant at Paradip at a combined investment of Rs 13,000 crore. The PX/PTA and Glycols plants will provide the raw material to catalyse the development of a world-class integrated Textiles Park being planned by the Government of Odisha at Bhadrak." "IndianOil has entered into a joint venture with IDCO to develop the Paradip Plastics Park, at an investment of Rs. 106 crore, to provide a state-of-art manufacturing base for the downstream plastics industry in Odisha with support facilities ranging from warehouse for raw material and finished products, product testing facilities, etc. all under one roof," he added.
The event witnessed participation of a wide array of stakeholders, including vibrant young entrepreneurs, industry stakeholders and professional from the plastics and textiles industries.
Shri Dharmendra Pradhan and Shri Pradipsinh Jadeja also inaugurated an exhibition on the sidelines of the Conclave in which various established players of textiles and plastics industries in Gujarat showcased their products & expertise. A knowledge paper showcasing mega opportunities in Textiles & Plastics downstream sectors in Odisha, prepared by M/s. Deloitte, was unveiled by the dignitaries on the occasion.
An Investor Facilitation Centre was also set up in the Conclave to guide the prospective investors in Plastics Park at Paradip and Textiles Park at Bhadrak. Representatives from Central Government organisations, State Government, IndianOil and financial institutions were available to guide the investors in this facilitation centre.
MORE DETAILS -
Petrochemicals, Textiles & Plastics: Sunrise Industry in Eastern India
The petrochemicals sector provides the basic raw material to the plastics and textiles sectors in the form of Purified Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG) and Polymers like Polypropylene (PP), Polyethylene (PE) and a number of other hydrocarbon products.
Currently, India's per capita consumption for plastics is at about 10 kg per person, which is low in comparison to the global average of about 32 kg. With the rise in living standards, the buying capacity for clothes, houses, furniture, automobiles and household items has increased, adding to the polymer consumption demand in India.
Odisha has immense potential for the growth of the plastics and textiles sectors with convenient access to all the primary raw material needed. The region also has the necessary infrastructure, including ports, railway connectivity and road networks, that will facilitate the speedy development of the two sectors.
The Government of India has identified Paradip as one of the four PCPIRs (Petroleum, Chemicals and Petrochemicals Investment Region) in the country. It is the most strategically located PCPIR approved by the Government of India. With IndianOil as the anchor tenant, it is being developed to provide an ecosystem for attracting and promoting exclusive investments in petroleum, chemicals, petrochemicals and allied sectors.
IndianOil's Projects in Odisha
IndianOil has a strategic role in Odisha with its big presence and ambitious expansion plans in the petroleum refining and petrochemical segments. The Company has already commissioned a 15-million metric tonnes per annum refinery at Paradip at an investment of Rs. 35,000 crore.
A new polypropylene unit of 700 KTA (kilo tonnes per annum) capacity is getting ready at IndianOil's Paradip Refinery complex to support the plastics industry. Estimated to cost Rs. 3,150 crore, the plant is getting ready to be commissioned by the end of this year.
The Plastics Park at Paradip, being jointly developed by IDCO and IndianOil in JV mode, will utilise polypropylene from Paradip Refinery complex. The Park is spread over 120 acres, out of which 70 acres will be available for industrial plots. The downstream units coming up in the Park will have access to state-of-the-art facilities, including CIPET's Polymer Processing and Evaluation Centre (PPEC), to support innovation and diversified growth. The units likely to come up include raffia for cement bags, FIBC, etc.; injection moulding units for furniture items, houseware, caps, etc., BOPP and TQPP for flexible packaging; and non-woven for hygiene applications. The net employment generation from the Park will be more than 7,000.
IndianOil is also planning to set up two more mega projects in Odisha at a combined investment of Rs 13,000 crore for producing polyester fibre intermediates, MEG (Mono Ethyl Glycol) and PTA (Purified Terephthalic Acid). Polyester is the most prominent textile fibre with a share of over 55% of global consumption. Its end-use includes apparel, home textiles, technical textiles and accessories.
India's current domestic textiles and apparel market is estimated at US$ 125 Billion, and is expected to grow at 11% CAGR to reach US$ 220 Billion by the year 2025. Growth of disposable incomes, favourable demographics and changing lifestyles will further add to the demand.
There is a huge potential for investment in this segment since the value chain from fibre/yarn to finished clothes/apparel involves a plethora of activities like weaving/knitting/dying/cutting/sewing/garmenting, etc. Hence, apart from the commercial aspects, this is expected to create thousands of jobs across categories for the benefit of the local population.
A Textiles Park is expected to come up in Bhadrak district of Odisha. The integrated Textiles Park, to be developed in 234 acres, will house units from across the entire value chain – from polyester fibre to apparel. IndianOil will make available the basic raw material, i.e., PTA & MEG, within the State itself, for the downstream industries.
The above measures are expected to significantly boost the economy as well as create huge employment opportunities in eastern India.
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(Kalikrishna M)
Executive Director (Corporate Communications)
Indian Oil Corporation Limited
Corporate Office
New Delhi
