Chapter 5

Existing Industrial Profile

Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
INCEPTION REPORT

Chapter 5. Existing Industrial Profile

5.1 Industrial Scenario in Odisha
There are 106 Industrial Estates in Odisha and 11 more are in planning. Apart from these, 9 SEZ’s, one
Electronic Manufacturing Cluster (EMC) one PCPIR, and one special Investment region, plastic park, food park,
aluminium park etc. are under implementation or planning.
The industrial sector contribution to the State’s GSDP was 33.45% in 2014-15. The State has 25% of India’s iron
reserves and 10% of India’s production capacity in steel. Odisha is the top aluminium producing State in India.
Primary industries in Odisha are manufacturing, mining & quarrying, electricity, gas, water supply and
construction.

5.1.1 Current Petrochemical Scenario in India and in Eastern Region

India is currently the 3rd largest polymer consumer globally, behind USA and China. During the period 2000 to
2015, the consumption growth in India has remained 14%, against 3.6% in USA and 8% in China. Thus, the
country is considered to be the fastest growing polymer consumer in the world, though volume wise, the
country is at the level of one-third of each of these countries.
Petrochemical industry is one of the fastest growing industries in India. The industry is divided into three parts
– olefins (ethylene/Propylene), aromatics (benzene, tolune, xylene, intermediate products) and end products
(polymers, synthetic fibres, synthetic rubbers etc.).
The industry is characterized by five large players – Gas Authority of India Limited (GAIL), IOCL, Reliance
Industries Limited (RIL), Hindustan Petroleum Limited (HPL) and BPCL; who are into the manufacture of
polymers and raw materials for downstream industry. Apart from these, refiners like HMEL and Mangalore
Refinery and Petrochemicals Limited (MRPL) have entered into polypropylene manufacture based on FCC
propylene.
The industry enjoys benefits of low labour cost, trained manpower and huge domestic market but has the
disadvantages of old technology, insufficient logistics, high cost of feedstock and major dependency on
imported crude oil/natural gas. The industry is likely to grow even faster as a result of high expected GDP
growth, improvement in disposable incomes of people, urbanization, growing hygienic concerns and
requirement of packaging etc. All this is likely to result into increased demand from end-use sectors such as
white goods, automobiles, agriculture, pharma/healthcare sector, etc. The downstream user industry is highly
fragmented and spread all over the country. Presently, the Government regulations are in favour of the
industry. The Investment in the petrochemical industry is likely to fuel further growth. Economy of scale,
especially in the upstream area i.e. production of feed/raw materials is a major factor to ensure profitability.

The current installed capacity of basic major petrochemicals is 14.8 MMT. The installed capacity production
and consumption of feed and downstream products during the year 2014-15 is given in the Table below:

Table 5.1: Status of Capacity, Production and Consumption of various types of Petrochemicals
Status: 2014-15
Product
Capacity (MMT) Production (MMT) Consumption (MMT)
A. Basic Major Petrochemicals
Synthetic Yarns/Fibres 4.3 3.5 2.9
Polymers 8.0 6.5 9.4
Synthetic Rubbers 0.4 0.2 0.7
Synthetic Detergent – Intermediates 0.7 0.6 0.7
Performance Plastics 1.4 0.8 0.8
Total 14.8 11.6 14.5
B. Intermediates

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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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Fibre Intermediates 5.1 4.9 7.0

Building Blocks - Olefins 7.6 6.3 6.3
Building Blocks - Aromatics 6.3 4.6 3.8
Total 19 15.8 17.1
C. Other Petro-based Products 2.2 2.0 4.2

The above table indicates that several petrochemical have higher consumption than the production or capacity
in the country hence providing an opportunity for further investment.
Within India, the western and northern regions have almost reached to saturation level in terms of demand
and the next in line of development is the eastern region, as the region shows promising signs of unmet
demand, availability of infrastructure, availability of raw materials and political zeal of the government to take
the region further. With the development in the region, the requirement of polymer processing units such as
packaging, fibre, filament, automotive, healthcare, personal care etc. is inevitable, leading to petrochemical
demand growth in eastern region where petrochemical consumption is lowest.

5.2 Existing Industries in Paradeep

There are several existing PCP industries in Paradeep area. IOCL Refinery, Paradeep Phosphate Limited, Essar
Steel, IFFCO Fertilizer, Goa Carbon are of some the major industries present in PCPIR area.
The State Government has secured the consent of the Indian Oil Corporation Limited (IOCL) to be the anchor
tenant for the proposed PCPIR at Paradeep. Indian Oil is India’s flagship national oil company in the
downstream sector and the country’s largest commercial enterprise, accounting for nearly half of India’s
petroleum products market share, about 35% national refining capacity, and 71% downstream sector pipelines
throughout capacity.

The map below shows the location of major industries in PCPIR.

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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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Map 5.1: Industries in Paradeep PCPIR

5.2.1 Anchor Tenant: Indian Oil Corporation Limited

IOCL Paradeep Refinery project consists of 15 MMTPA capacity refinery integrated with petrochemical
complex for production of paraxylene, polypropylene and styrene at an estimated investment of Rs. 34,555
Crores. The refinery is already functional while the petrochemical complex is under development.
This refinery would be a major potential feedstock provider with products such as Polypropylene, Mono
Ethylene Glycol, Paraxylene-Purified Terephthalic Acid (PTA), Petcoke etc. Paradeep port, one of the major
ports of the country will provide easy access to ASEAN countries.

Paradeep Refinery
Indian Oil chose to set up refinery at Paradeep due to its proximity to the port and to meet the burgeoning
energy demands of the domestic market and partly the South-East Asia export market. The finished petroleum
products from Paradeep refinery will be shipped to as far as Asia Pacific, Europe, USA, and to the demand
centers in the east of India, north east and to some southern states like Andhra Pradesh and Telangana. The
refinery is envisioned as the Energy Gateway to Eastern India.
The Refinery at Paradeep is spread over a total area of 3,345 acres, which includes 300 acres for Refinery
Township and about 100 acres of land for building of two approach roads to connect the refinery site with the
existing road network. About 7 acres of land has been acquired at Cuttack for setting up the raw-water intake
facility. Currently, 725 people are employed at the refinery.

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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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Figure 5.1 IOCL Refinery at Paradeep

The refinery can process 100% high sulphur and heavy crude oil to produce various petroleum products like
Petrol and diesel BS-IV quality, kerosene, Aviation Turbine fuel, Propylene, Sulphur and Petroleum Coke. The
refinery is also designed to produce Euro-V premium quality Motor Spirit and other green auto fuel variants for
export to advanced countries.
Many first-time technological features like flue gas desulphurization, vapour recovery system from jetty
loading, and an alkylation process to get octane-rich low-benzene MS blend component, etc. have been
introduced that would ensure environment friendly operations with minimum impact on the eco-system.
The refinery is configured to process high-sulphur heavy crude oils with major secondary process units like
Fluidised Catalytic Cracker (FCC) i.e., INDMAX technology developed in-house by Indian Oil R&D, Delayed
Coking Unit (DCU) for coke production, besides Diesel Hydro-treatment and Catalytic Reformer, Alkylation unit,
Merox, etc., for quality up-gradation of products.
The refinery structure has been built to withstand wind velocity of 65 m/sec or 235 Km/Hour. Even during
Phailin in October 2013 and during cycolone Hudhud in October 2014, the refinery did not sustain major
damage, bearing testimony to its world-class engineering and construction standards.

With a 700-kilo tone per annum capacity Polypropylene plant to be commissioned at Paradeep by 2017-18,
Indian Oil will be fuelling the GoO’s vision of energizing the petrochemical hub. This unit will spur the
development of large number of polypropylene-based downstream industries like furniture, packaging,
houseware, disposable cups, medicine bags & textile packaging in Odisha and its neighboring states. This is
expected to result in an investment of about Rs. 1200 Crore, with direct employment of approximately 7000
people.

Storage Capacity: The refinery is equipped with 11 crude oils tanks to store high sulphur heavy crude, with 58
petroleum product & intermediate tanks (including for liquid sulphur storage tanks). Apart from these liquid
storage facilities, there are LPG storage mounded bullets, propylene storage mounded bullets, Hydrogen and
alkylation feed mounded bullets.

Distribution modes: The petroleum products of the refinery include 49.6% of middle distillates ( SKO, ATF,
Euro-III HSD, Euro-IV HSD, 31.5% of light distillates (LPG, Propylene, Euro-III MS, Euro-IV MS) and 19.9% of
Petcoke, Sulphur etc.
An elaborate infrastructure has been developed for pumping crude oil to the Paradeep Refinery and for the
smooth, safe and efficient movement of the finished products. This includes a crude oil unloading facility at
Pradeep offshore with the SPM facility on the east coast of India, a complex cross-contry product pipeline
network, a marketing terminal with truck loading bays and tank-wagon gantry, an LPG terminal with facilities
for road dispatch, but the biggest crude receipt and and product dispatch infrastructure at Paradeep Refinery
is the captive South Oil Jetty, the first-of-its-kind in India made for a greenfield coastal refibnery. The product
shall be dispatched through pipeline (20-25%), rail (20-25%), road (15-20%) and coastal (40-50%) movements.

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Preparation of Master Plan and Zonal Plans for Paradeep PCPIR, Odisha
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5.2.2 Indian Farmers Fertilizer Cooperative Limited (IFFCO)

IFFCO has acquired the fertilizer unit of Oswals at Paradeep in Odisha in 2005. The raw materials required for
the fertilizer unit are Phosphorous, Ammonia, and Sulphur which are imported from Jordon, Peru and Brazil.
The total area occupied by IFFCO is 2093.63 acres including its township area of 310 Acres. IFFCO employs
1315 regular employees and 3500 contractual workers.

Figure 5.2 IFFCO Fertilizer

The total production capacity of IFFCO is 2 million tonnes/ annum and has a turnover of Rs. 5,000-6,000 Crores
The raw materials required by the complex are shipped from the various overseas ports and unloaded at the
IFFCO Jetty located at Paradeep Port. The solid raw materials are discharged by 2 nos. ship unloaders each
having capacity 1500 MTPH and conveyed to their respective storage areas by conveying system of 3000 MTPH
capacity. These raw materials are transported to the plant through a network of belt conveyors & pipelines.
Table 5.2 IFFCO Plant Capacity
SI. No. Plant Capacity
1 Sulphuric Acid Plant 23,10,000 MTPA
2 Phosphoric Acid Plant 8,75,000 MTPA
3 Di-Ammonium Phosphate (DAP) Plant 19,20,000 MTPA
4 Turbo Generator sets for power generation 2 sets having 55 MW capacity each
5 Coal fired steam generation 2 streams having 110 TPH capacity each
plant
6 Various utilities / offsite facilities Sufficient to cater the need of all the main plants
Source: www.iffco.in

Manufacturing process is supplied by M/s Lurgi GmbH, Germany. Solid Sulphur is melted in three sulphur
melting tanks provided with steam coils. The liquid ‘Sulphur’ is then filtered in filters and pure liquid sulphur is
stored in the molten sulphur storage tank at 1450 C. From this, the molten sulphur is pumped to the sulphur
furnace.

5.2.3 Paradeep Phosphate Limited (PPL)

Incorporated in 1981; Paradeep Phosphates Limited (PPL) is a joint venture of Adventz Group. PPL
manufactures and markets complex phosphatic fertilizers and intermediary products like Phosphoric Acid and
Sulphuric Acid, crucial in the manufacture of phosphatic fertilizers. All the products are marketed under the
popular ‘Navratna’ brand. PPL’s range caters to almost all agricultural applications.

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Table 5.3 Design Production Capacity: PPL

Type of Plant Capacity (MT)
Di-Ammonium Phosphate Plant 12,00,000
Phosphoric Acid Plant 3,00,000
Sulfuric Acid Plant 7,26,000
Source: www.paradeepphosphates.com

The Paradeep plant of PPL has an installed annual capacity of 7,20,000 metric tonnes of DAP and other
phosphatic fertilisers which was commissioned in 1986. The off-site facilities comprise of a 3.4 km closed
conveyor from port to plant site, a railway siding, raw material storage yards and a 3.1 km long pipe rack.
In 1992, a Sulphuric Acid Plant with an annual capacity of 6,60,000 metric tonnes and a Phosphoric Acid Plant
with an annual capacity of 2,25,000 metric tonnes were added. Major raw materials like phosphoric acid,
ammonia, rock phosphates, sulphur and MOP are imported from Morocco, Tunisia, Indonesia, Jordan, Saudi
Arabia and CIS countries. PPL has a captive berth at Paradeep Port with facilities to unload solid and liquid
cargo. Products of PPL are distributed in a Pan market covering 16 states across India.

Figure 5.3 Paradeep Phosphate Limited

PPL has the following off site facilities also:

 3.4 km long closed conveyor from Paradeep Port to the plant site
 A railway sidings
 Raw material storage yards
 3.1 km long pipe rakes

5.2.4 Goa Carbon

Goa Carbon Limited acquired the calcination plant of 1,25,000 TPA capacity at Paradeep which is now called
Paradeep Carbons Limited. The plant has a total area of 14.41 acres. It is located at about 8 km from Paradeep
Port. The company is in the business of manufacture and marketing of Calcined Petroleum Coke (CPC).
Company imports raw material from Gulf, China and Russia through sea ways. The company is a regular
supplier to aluminium smelters, graphite electrode and titanium dioxide manufacturers such as NALCO,
Vedanta and HUNDALCO, as well as other users in the metallurgical and chemical industries.
In 1993, Goa Carbon became the first Indian manufacturer-exporter of petcoke along with its subsidiary
Paradeep Carbons Limited to Australia, Egypt, Dubai, France, Kuwait, Iran, Saudi Arabia, Singapore, Malaysia,
Indonesia, Thailand, South Africa, Russia, Wales and England. The annual turnover of company is 300 Crores
and employees 94 regular and 318 contractual workers at its plant.

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