Paradip Refinery - Energinizing the Nation
Paradip Refinery in Odisha has recently been dedicated to the nation by Mr. Narendra Modi, the prime minister of the country. The refinery is a dream project of Indian Oil Corporation set with the latest technologies to process and refine crude oil and serve various states in the country and look out for exports in South East Asian countries. The project would benefit the general economy of the country and the state in particular in a very big way.
Paradip Refinery Paradip Refinery, dedicated to the nation by Prime Minister Narendra Modi on the 7th day of February 2016 is considered the most prestigious project by Indian Oil Corporation Ltd. (IOCL). It is the 11th refinery set up by the company in the country. With an investment of about 35,000 crores and an additional 30000 crores to be injected by the company in near future, the project is expected to add magnanimously to the capacity and profitability of the company.
Set in the coastal town of Paradip in Odisha, the refinery is just 5 kms from the Paradip Port. The town is about 90 Km by road from Cuttack, a major city in Odisha and about 120 Km from Bhubaneswar, the Capital of Odisha. It is also well connected by road, rail & air with other parts of the country. The town is rightfully referred to 'Vikas Dweep' by Mr Modi.
The Refinery site is spread over a grand area of 3344 acres and has a creek in between dividing the area into two parts. The site can be approached from the Highway or from the Coastal road through the jetty constructed for evacuating the produce of the refinery.
Indian Oil Corporation Limited Indian Oil Corporation Limited recognized simply as Indian Oil is India's largest commercial enterprise had been ranked 119th among the world's largest corporate in the prestigious Fortune 'Global 500' in 2015. This had been the first for India. Serving the nation for over 5 decades, the company is now looking for business opportunities in energy in Asia and Africa besides having its subsidiaries in Mauritius, Sri Lanka and the UAE.
The refinery at Paradip is that of the latest technology and would be producing Bharat Stage IV fuels. The refinery would sore up to meeting the fuel needs of Eastern and South Eastern markets and for exports as well. The foundation stone of the refinery was laid way back in May 2000 by the then Prime minister, Mr Atal Bihari Vajpayee. However, the refinery could actually start its production only in January 2016. There had been many ups and downs in the project since the very inception of the setting up of it.
Journey of the Paradip Refinery The journey of the refinery since the very beginning has been that of too many hurdles. It could start its operations after almost 24 years of the approval of the project:
- July 1992: P.V. Narasimha Rao Govt decides to set up the refinery in a joint venture (JV)
- Aug 1995: Approval of Kuwait Petroleum (KPC) as JV partner
- July 1998: Approval for 9-mmtpa refinery project in JV with KPC
- Dec 1998: Govt of Odisha (GoO) declares incentives for the refinery project
- Aug 1999: IOC decides to set up refinery on its own due to uncertainty in venture with KPC
- Jan 2000: KPC withdraws from the refinery project
- May 2000: The then PrimeMinister Mr Atal Bihari Vajpayee lays the foundation stone for the refinery
- Feb 2002: GoO withdraws the incentives being given to the refinery leading to the project being put off.
- Feb 2004: GoO again restores the incentives to the refinery by signing a memorandum of understanding
- Mar 2006: The revised configuration of the project gets yet another approval.
- Feb 2009: The refinery gets the final investment approval
- Jan 2016: The project finally started its operations with production of Petrol
- Feb 7 2016: the refinery is dedicated to the country by the Prime Minister, Mr. Narendra Modi.
Features of Paradip Refinery The refinery would be processing 15 MMTPA of high sulphur crude oil imported and transferred through crude pipelines. Paradip Port Trust would also be benefitted by the refinery as it would be receiving the crude from the refinery directly.
- The refinery owns more than 20 process units deploying high end refining processes such as Crude Oil Distillation and Catalytic Cracking.
- The refinery is expected to produce 78 crore kg LPG; 1500 crore litre petrol; 600 crore litres diesel; 250crore litres of kerosene and ATF; 27 lakh quintal sulphur, 120 crore litre petroleum coke
- The Refinery has an existing marketing terminal for evacuation of its products. Further the LPG terminal and 2 more pipelines are proposed to be set for evacuation of LPG and petroleum and Kerosene respectively. Certain by-products would be exported using the coastline. Sulphur and petcoke would be sold to the nearby industries.
- Odisha is rich in mineral deposits and has huge resources of natural gas reserves. Hence providing the raw materials in abundance and with minimum hassles of transportation and time taken.
- The vast coastline outlining the town adds to the positives. It paves way for easy transport of the consignments to other places as well as for exports.
- Adequate and cheap human resources are available here. The habitants in this part of the state are simple and hardworking. Moreover, labor from other parts of the country also finds it easy to migrate to and settle down here. This also adds to the reasons for selecting the site.
- The town is a peaceful one away from any riots. The law and order situation in the state is also better in comparison to many other states at present.
How does the refinery benefit the state
- The refinery would provide ample job and employment opportunities to the people of Odisha. There could be opportunities in all the levels, be in labor job, middle management level or the top management levels.
- The refinery would be producing LPG. Now even the poor may afford to have an LPG connection in their kitchen.
- The by products from the refinery i.e. surplus can be used in urea and fertilizers, hence benefitting the farmers locally and in the country as well.
- Many cottage and small and medium industries would also evolve around the refinery. The plant would also encourage much ancillary and downstream industry.
- The state would also benefit from the 1 lakh crore as committed by the Ministry of Petroleum and Natural Gas.
The refinery is expected to reach the 60% of its 15 MMTPA capacity in a short span of time. This in itself would contribute to the rise of profits for the oil marketing major by 20-30%. IOCL is looking forward to serve the output in Odisha, Jharkhand, Madhya Pradesh, Chattisgarh,and Andhra Pradesh. It also plans to export to South East Asian countries. Ultimately, many more other developments and initiatives are also expected to be associated with the refinery's operations leading to an overall rise in the economy of the people and the country. Paradip Refinery is truly energizing the nation.