Mumbai, Oct. 1 -- Indian Oil Corporation plans to establish a chemical downstream unit at Haldia in West Bengal, expanding its operations around the oil refinery in the port town. The company has sought 175 acres for the project, with the final design and scale dependent on the land made available.
The state government has arranged 85 acres through the Haldia Development Authority, while discussions are continuing with the port authority for the remaining land. The project proposal is expected to be placed before the Indian Oil Corporation board for consideration within six to eight months after the land requirement is resolved.
The plan was discussed during a visit to Kolkata by Indian Oil Corporation chairman Arvinder Singh Sahney, who was attending the curtain-raiser for India Energy Week 2027. Chief minister Suvendu Adhikari assured support for securing the additional land, while petroleum minister Hardeep Singh Puri praised the state government's efforts and indicated that the board approval process was progressing.
Adhikari recalled that land had earlier been allotted to Indian Oil Corporation during his tenure as chairman of the Haldia Development Authority for a delayed cracker project involving more than Rs. 22 bn. He said the project had since become a profitable business for the company.
The Haldia refinery has an installed capacity of 8 mn t and was commissioned in 1975. Its operations have been affected by the low river draught, which makes it difficult for the company to receive large crude carriers and increases operating costs. A downstream chemical facility producing value-added products would be less exposed to those shipping constraints. Puri said oil companies were investing Rs. 176 bn in projects, with a further Rs. 15 bn at the planning stage.
Published by HT Digital Content Services with permission from Construction World.