THEBUSINESSBYTES BUREAU

PARADIP, JULY 29, 2026

State-run IndianOil is doubling down on its eastern India strategy with fresh investments of nearly ₹19,251 crore in petrochemicals, sustainable aviation fuel and textiles, reinforcing Paradip's emergence as one of the country's fastest-growing integrated energy and manufacturing hubs.

Addressing a press conference here on Wednesday, Kausik Basu, Executive Director and Refinery Head, IndianOil Paradip Refinery, said the company's cumulative investment at Paradip has already reached ₹43,359 crore, spanning refinery operations, a polypropylene plant and a mono ethylene glycol (MEG) unit. The investments have transformed the refinery into a key economic engine for Odisha while supporting more than 12,500 direct and indirect livelihoods across the region.

The next phase of growth will be anchored by a ₹13,805-crore Paraxylene-Purified Terephthalic Acid (PX-PTA) project, which is expected to significantly deepen India's petrochemical value chain and reduce import dependence. The company is also planning to invest around ₹4,382 crore in the proposed Bhadrak Textile Park through a joint venture with MCPI Private Limited, aimed at creating an integrated polyester and textile manufacturing ecosystem in Odisha.

In another strategic move aligned with India's clean energy transition, IndianOil plans to invest ₹1,064 crore through a joint venture with M11 Energy Transition Pvt. Ltd. to establish a Hydroprocessed Esters and Fatty Acids (HEFA)-based Sustainable Aviation Fuel (SAF) plant, positioning Paradip as a future contributor to the country's low-carbon aviation fuel programme.

"The investments are part of IndianOil's long-term strategy to develop Paradip into a world-class integrated refinery and petrochemical hub while supporting the Government of India's Aatmanirbhar Bharat vision and the country's transition towards cleaner energy," Basu said.

The expansion comes at a time when the refinery has reported its strongest operational performance since commissioning. During FY 2025-26, Paradip Refinery achieved its highest-ever crude throughput of 16.35 million metric tonnes, reflecting improved capacity utilisation and operational efficiency.

The refinery also commissioned its Standby Sulphur Recovery Unit-III (SRU-III) and the New Hydrogen Generation Unit (NHGU) during the year, enhancing operational reliability and environmental performance. Meanwhile, construction of the 1.2 million metric tonnes per annum Purified Terephthalic Acid (PTA) unit, a critical component of the PX-PTA complex, is nearing completion, marking a significant milestone in IndianOil's petrochemical expansion roadmap.

Basu said the Paradip complex is steadily evolving beyond a conventional fuel refinery into an integrated refinery-petrochemical ecosystem capable of producing higher-value downstream products while improving India's manufacturing competitiveness.

Apart from capacity expansion, the refinery continues to strengthen its environmental and safety credentials. During FY 2025-26, Paradip Refinery received several prestigious recognitions, including the Kalinga Safety Excellence Award, Kalinga Environment Excellence Award, the National Safety Council of India (NSCI) Safety Award, and the Green Champions Award, underlining its focus on operational excellence and sustainable industrial practices.

The refinery has also emerged as a major contributor to public revenues. During FY 2025-26, Paradip Refinery contributed more than ₹30,392 crore to the State and Central governments through duties, taxes and levies, making it one of Odisha's largest industrial contributors to the exchequer.

Beyond its industrial footprint, IndianOil continues to expand its social investments across the refinery's surrounding areas. Since FY 2014-15, the company has spent ₹56.71 crore under its Corporate Social Responsibility (CSR) and Corporate Environment Responsibility (CER) programmes. The initiatives cover education, healthcare, nutrition, rural development, skill development, youth training, self-employment, and support for orphanages and old-age homes, reflecting the company's emphasis on inclusive development alongside industrial growth.

Highlighting the refinery's wider economic impact, Basu said Paradip today supports more than 12,500 livelihoods, including skilled and unskilled workers, contractors, transport operators and businesses linked to the refinery's extensive supply chain. The company has also been conducting local skill development and capacity-building programmes to improve employability in neighbouring communities.

"Paradip Refinery stands as a beacon of industrial excellence, innovation and inclusive growth. IndianOil's continued investments reaffirm our commitment to developing Paradip into a world-class integrated refinery and petrochemical hub that strengthens India's energy security, accelerates sustainable development, and creates enduring value for the people of Odisha and the nation," Basu said.

Commissioned by Prime Minister Narendra Modi on February 7, 2016, Paradip Refinery has grown into the largest refinery on India's eastern coast. Spread over nearly 3,300 acres, the facility has become the country's energy gateway to eastern India and a key strategic asset in IndianOil's national refining network.

A Fortune 500 integrated energy major, IndianOil accounts for nearly one-third of India's refining capacity and serves over a billion consumers through a nationwide network of more than 65,000 customer touchpoints. With Paradip emerging as one of its flagship integrated energy and petrochemical centres, the company is positioning Odisha at the heart of India's next phase of industrial and manufacturing growth.