IndianOil's MEG Project in Paradip is set to play a crucial role in the development of Odisha
Shri Dharmendra Pradhan, Hon'ble Minister for Petroleum, Natural Gas and Steel today flagged-off a consignment of critical equipment from Hazira to Paradip for IndianOil's MEG (Mono Ethylene Glycol) Plant. The Over Dimensioned Consignment (ODC) movement of the flagged-off equipment includes an Ethylene Oxide Reactor, a Washtower and a Deethylenizer. With the delivery of this consignment, the Paradip MEG project will take a significant stride towards its commissioning, which is all set to play a crucial role in the economic development of Odisha and its neighbouring states.
Also present on the occasion were Mr S M Vaidya, Chairman, IndianOil, Mr S N Subrahmanyan, CEO & MD, Larsen & Toubro, Mr Subramaniyan Sarma, Whole Time Director and Sr EVP (Energy), Larsen & Toubro; besides other senior officials from MoP&NG, Larsen & Toubro, and IndianOil.
MEG is used as one of the raw materials for the production of Polyethylene Terephthalate (PET), Polyester Staple Fibre (PSF), Polyester Filament Yarn (PFY), and other similar products. IndianOil's Ethylene Glycol Project at Paradip, which includes a 180 KTA Ethylene Recovery Unit (ERU) and a 357 KTA Ethylene Glycol unit (EGU), is expected to produce 332 KTA MEG. This project is expected to be commissioned in October 2021 at IndianOil's Paradip Refinery at an investment of Rs 5654 Crore.
During his address, Shri Pradhan said that this is a significant step towards realising Hon'ble Prime Minister's vision of 'Atmanirbhar Bharat'. He referred to this project as a launching pad for developing downstream textile industries in Odisha. Complimenting L&T's manufacturing prowess, Mr Pradhan remarked, "Very few facilities in the world can manufacture such complex equipment, and I am glad that L&T's Hazira unit is fully equipped to manufacture such world-class reactors which truly is a boost for our Make in India Mission".
Shri Pradhan further added that "Textile, garments and packaging industries drive the MEG demand and India is a net importer of MEG. The entire production from the upcoming MEG plant of IndianOil at Paradip is expected to be consumed domestically. The Paradip plant will also meet the entire MEG requirement for the proposed Textile Park at Bhadrak and Dhamra in Odisha. It will significantly incentivise the Textile industry in Eastern India. As the textile industry is workforce intensive, it will also boost employment generation in the primary textile industry and other ancillary industries dependent on it".
Elaborating on the multiplier effect of the project on the local economy, Mr Pradhan said, "Odisha has plenty of skilled technical manpower for developing textile units as around 5 Lakh people from Odisha run similar industries at Surat. With the commissioning of MEG and Polyester yarn units, this trained manpower would be keenly interested in taking part in downstream units at Bhadrak Textile Park and the proposed Mega Textile Park at Dhamra, Odisha. Around 2000 people would get job opportunity in Bhadrak Textile unit and 12000 in the downstream units at Bhadrak Textile Park. Similarly, MEG from Paradip would provide impetus in developing similar units at the proposed Textile Park at Dhamra, Odisha with estimated 20000 employment opportunities additionally, in due course of time."
Sri S M Vaidya, Chairman, IndianOil said, "In the last five years, IndianOil has invested Rs. 41,000 Crore in the State of Odisha in the refinery, pipelines, marketing & petrochemicals sectors. With the Ethylene Glycol plant commissioning at Paradip and revamp of the MEG Plant at Panipat, IndianOil will have approximately 32% of the country's installed capacity. It will add to the profitability of Paradip refinery and improve IndianOil's petrochemical integration index while significantly adding to India's self-reliance and contributing to the development of the eastern parts of the nation''.
K. John Prasad
Chief General Manager
Indian Oil Corporation Ltd.