IOC Signs MoU with Odisha for ₹61,077 Crore Paradip Petrochemical Project

Indian Oil Corporation Ltd (IOC), yesterday, on April 8, 2025, signed Memorandums of Understanding (MoUs) with the Odisha government, committing to invest ₹1.19 lakh crore in the state. Of this, ₹61,077 crore has been allocated for a petrochemical complex in Paradip, and ₹58,042 crore for a naphtha cracker unit. The MoUs were signed during the Odisha Investors Meet held in New Delhi.

As of 9:57 AM on April 9, 2025, Indian Oil Corporation share price was trading at ₹130.95, a 1.37% down, but down 20.51% over the past six months and 22.47% over the past year.

Paradip Petrochemical Complex

The Paradip complex will include a naphtha cracker with a planned capacity of 1.5 million tonnes. The project is expected to be completed in four to five years. Feedstock will be sourced from IOC’s existing Paradip refinery, where the company has already invested around ₹55,000 crore.

The facility will produce chemicals such as PVC, polypropylene, and phenol, which are used in various industries including packaging, textiles, and agriculture.

Other MoUs Signed

Alongside IOC, Petronet LNG Ltd signed an MoU with the Odisha government for setting up a land-based LNG terminal at Gopalpur Port. The company plans to invest ₹6,500 crore for a terminal with a capacity of 5 million tonnes per annum.

Project Background and Financial Performance

According to the Odisha Chief Minister’s Office reports, the state is an equity partner in the naphtha cracker project and will receive dividends in addition to tax revenue. The project is expected to be one of the largest in its sector in India.

On the financial front, IOC reported a 76.57% decline in consolidated net profit for Q3 FY25 at ₹2,115 crore, compared to ₹9,029.56 crore in the same period last year. Revenue from operations dropped by 5% to ₹2,15,522 crore.

Conclusion

The Paradip investment is part of IOC’s broader expansion in Odisha, which includes petrochemicals, LNG infrastructure, and oil storage, aimed at increasing capacity and meeting rising domestic demand.

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