Indian Oil Corporation is teaming up with Chatterjee group arm, MCPI to set up a Rs 1,000 crore polyester staple fibre (PSF) unit in Odisha. This is part of an overall investment drive taken up by the state government to attract big ticket investment in downstream units across industries in the state.
The unit is scheduled to come up on 200 acres at Dhamnagar in the state’s Bhadrak district. It will source raw material from Haldia in West Bengal and have a 108 kta (kilo tonnes per annum) PSF capacity. It will also produce 180 kta of drawn texture yarn (DTY) and 36 kta of full drawn yarn (FDY) mainly used as technical textiles, which find wide use in industrial textile and in the garments trade. This is the second such downstream petrochem facility in the state, where IOC is also setting up a plastic park at Paradip close to its refinery.
We are reaching out to potential investors in West Bengal and across the country, offering them an opportunity to set up downstream units in these industrial parks,” Odisha’s principal secretary (industries department) Sanjeev Chopra said. The state government officials who are on a roadshow in the city, said they received good response from prospective investors. A similar roadshow is being planned to be held in Mumbai next month.
Odisha officials also met Engineering Exports promotion Council (EEPC) officials and some 20-odd representatives of forging and casting units based in Howrah to attract them in setting up units in the state. As part of Odisha’s Vision Document 2030, the target is to achieve 50 per cent value addition of primary metal produced within the state from the current level of 10 per cent, Chopra said.
While metal majors like Hindalco, National Aluminium (Nalco), Jindal Stainless, JSPL, Tata Steel or Vedanta have a manufacturing presence in our state, we have till now not had much success with downstream units in metal based industries. We have now decided to address this issue and are aiming at a raising the level of conversion of this primary metal into value added products within the state,” Chopra said.
In step, the state has initiated talks with the likes of Tata Steel to set up an industrial park at Kalinganagar. While Tata Steel will provide raw material and hand hold smaller units that choose to set up base in the industrial park. Vedanta is looking at a similar facility at Jharsuguda he added while Nalco which is setting up an aluminium park and Angul has already received proposals worth Rs 1200-1300 crore.