State-owned refiner Indian Oil Corporation (IOC) on Wednesday said it will invest Rs 61,077 crore in building a petrochemical complex at Paradip — its largest-ever investment at a single location — as it doubles down on its transition plan.

In a statement, the IOC said its board has given “Stage-1 approval for setting up Paradip petrochemical complex at Paradip at an estimated cost of Rs 61,077 crore.

“This mega project will be the largest-ever investment of Indian Oil at a single location”.

However, it did not give timelines for the completion of the project. This is a part of its transition plan, including boosting petrochemical intensity to help protect against volatility. Petrochemical intensity refers to the percentage of crude oil that is converted directly into chemicals that are used to make plastic and other material.

The petrochemical complex shall include a world-scale cracker unit along with downstream process units for producing several petrochemical products including poly propylene (PP), high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE) and poly vinyl chloride (PVC). It shall also facilitate the production of niche chemicals and petrochemicals such as phenol and iso-propyl alcohol.

Shrikant Madhav Vaidya, the chairman, IndianOil said: “This mega project is aligned with Prime Minister Narendra Modi’s vision of Purvodaya that is sure to accelerate the development trajectory and fuel prosperity in Eastern India.

“This cutting-edge, state-of-the-art petrochemical complex will undoubtedly be transformative in its impact, significantly advancing the Atmanirbhar Bharat initiative.”

IOC said the mega project shall significantly improve the petrochemical intensity index of IndianOil. It shall be a growth driver in making the company a major player in the petrochemical industry, while strengthening India’s self-reliance in the sector.

The project will catalyse the growth of PCPIR and a plastic park at Paradip. On the commissioning of this project, domestically available petrochemicals are expected to provide feed and vitalise industrial growth in key downstream industries such as plastic, pharma, agrochemical, personal care and paints.

It is also expected to create employment opportunities in eastern India, especially Odisha.

Crude oil, pumped out of the ground and from below the seabed, is processed in refineries to make petrol, diesel and other fuel.

It can be processed to make petrochemicals, bypassing the fuels. IOC’s petrochemical intensity — the percentage of crude oil converted into chemicals — is low at 5-6 per cent at present. The company intends to take it up to 10-12 per cent.

At Paradip

■ Investment largest at a single site by IOC

■ Project aims to process 10-12% of crude oil against 5-6% now

■ Unit to have cracker facility along with multiple downstream units