Odisha is set to become a major player in India’s oil and gas sector, targeting a massive $14.1 billion investment to build a petrochemical hub along the Bay of Bengal. Indian Oil Corporation Ltd. (IOCL), the country’s largest oil refiner, will contribute nearly half of this amount to establish a state-of-the-art naphtha cracker facility.
The 10-year development plan aims to reduce India’s dependence on imported petrochemicals while fueling downstream industries such as agrochemicals and pharmaceuticals. Hemant Sharma, Additional Chief Secretary of Odisha’s Industries Department, highlighted the project’s potential to transform Odisha into a national industrial hub.
Driven by rising domestic demand and the government’s push for self-reliance, Odisha is capitalizing on global trade shifts by offering attractive incentives to manufacturers. These include access to port-side land, affordable power, capital subsidies, and reliable water supply.
Indian Oil recently signed a preliminary agreement to set up a dual-feed cracker and associated downstream units in Paradip—home to its existing 300,000-barrels-per-day refinery. The new investment, valued at ₹610 billion, will support the production of key petrochemical products like phenol and polyethylene.
Sharma noted that more companies are expected to follow Indian Oil’s lead by relocating their overseas petrochemical units to Paradip. Odisha’s strategy centers on delivering world-class infrastructure that competes with established industrial zones in China and Southeast Asia.