IOC plans Rs 15,000-crore chemical hub in Haldia

KOLKATTA: Indian Oil Corporation (IOC) has signed a memorandum of agreement (MoA) with the West Bengal Industrial Development Corporation (WBIDC) for setting up a chemical hub in Haldia. IOC will play the role of anchor investor for the hub, which will include a greenfield 15m tonne refinery at an investment of around Rs 15,000 crore.

“We have identified 10,000 acres of land for the project,” West Bengal chief minister Buddhadeb Bhattacharjee told reporters at Writers’ Buildings on Wednesday. The hub will be named after Achraya Prafulla Chandra Ray, the father of chemicals industry in Bengal and founder of Bengal Chemicals.

The chemical hub will come up in petroleum and petrochemicals investment region (PCPIR) and is part of the special economic zone (SEZ) being set up by a consortium led by Indonesia-based Salim group, Unitech and Universal Success. IOC chairman Sarthak Behuria said: “The project will have world-class infrastructure that would rival the best in the world. Since it will come up in PCPIR with SEZ benefits, it would be a boon for the entire eastern region.”

Mr Behuria added: “We will scout for a global partner to invest in the refinery, in addition to attracting investment in downstream units.” IOC’s plan for a similar size 15-mt refinery in Paradip is also taking shape and will not be affected by its Haldia venture.

As part of the agreement, IOC will study all aspects of the chemical hub, the proposed refinery, upstream and downstream units and finalise a detailed roadmap. A joint working group is being formed to study various aspects of the project. IOC has nominated K Govindarajan, its executive director (petrochemicals), to the group.

With the signing of the MoA, West Bengal has placed itself ahead of other states in the SEZ race. It has already selected an anchor developer.


and an anchor investor for the said SEZ. “We will now approach the Union government for other necessary approvals and infrastructure facilities for the PCPIR,” the state’s minister for commerce & industries, Nirupam Sen said. “The chief minister had a meeting with the PM a few days ago in which the proposal for a deep sea port near Haldia was discussed. A consultant will be appointed to study the proposal.”

IOC is also keen on a deep sea port since it will facilitate movement of large vessels for transportation of crude oil. Moreover, a substantial portion of the refinery output could be targeted for exports to south-east Asia.