Executive Summary:
This document provides an answer to Lok Sabha Unstarred Question No. 3117 concerning the development of the petrochemical sector in India, including Odisha. It outlines the growth drivers, investment opportunities, benefits, and the role of Oil and Gas PSUs. The response includes details on current production capacity and upcoming projects, as of August 7, 2025.
Key Points / Main Content:
Growth Drivers and Investment Opportunities:
* India's petrochemical sector has potential due to low per capita polymer consumption compared to the global average.
* Growth is driven by population, a growing middle class, a large domestic market, rising incomes, urbanization, and demand from various sectors.
* Government initiatives like Make in India, Atmanirbhar Bharat, and PCPIRs support growth.
* The sector is delicensed and deregulated, driven by market demand.
* Investment opportunities include establishing greenfield and brownfield plants, producing key chemicals, speciality chemicals, and R&D.
* Three PCPIRs have been notified, including one in Paradeep, Odisha, to promote investment and industrial development.
Benefits of Petrochemical Plants:
* Socioeconomic benefits include direct and indirect employment.
* Infrastructure development (roads, power, housing, healthcare) is stimulated.
* Reduced import dependency and trade deficit.
* Support for downstream MSME sectors like textiles, packaging, agriculture, healthcare, and automotive.
Role of Oil and Gas PSUs:
* Oil and gas companies produce petrochemicals through integrated cracker units.
* Plans are in place to increase petrochemical production by 2030.
* Projects include production of PVC, PP, HDPE, LDPE, Iso Propyl Alcohol, Epoxy, Polyester, etc.
Production Capacity and Upcoming Projects:
* Current Petrochemicals production capacities of Oil and Gas PSUs total 11.9 MMTPA.
* Several upcoming petrochemical projects by PSUs and JVs are detailed, including location, state, products, and capacity.
Impact Analysis:
Oil and Gas Public Sector Undertakings (PSUs):
* Impact: PSUs are central to expanding petrochemical production, requiring them to leverage existing infrastructure and expertise and undertake new projects.
* Action Required: PSUs need to implement planned capacity enhancements and new projects, focusing on specific products and locations as detailed in Annexure II.
Department of Chemicals and Petrochemicals (DCPC):
* Impact: The DCPC is responsible for overseeing the delicensed and deregulated petrochemical sector and promoting investment through policies like PCPIR.
* Action Required: Continue to promote investment, monitor market demand, and facilitate the development of PCPIRs.
Local Population and MSME Sectors:
* Impact: The establishment of petrochemical plants will lead to employment opportunities and infrastructure development, benefiting the local population. MSME sectors will also benefit from reduced import dependency and growth in downstream industries.
* Action Required: Local populations and MSMEs need to prepare for new opportunities and potential growth in related sectors.
Investors:
* Impact: The petrochemical sector offers various investment opportunities in greenfield and brownfield projects, specialty chemicals, and R&D.
* Action Required: Investors should explore opportunities in the petrochemical sector, focusing on areas with high growth potential and government support.
Key Entities Referenced
Odisha: A state in India, specifically mentioned in relation to the petrochemical sector's growth and investment.
PCPIRs Petroleum, Chemical and Petrochemical Investment Regions: A policy initiative by the Government to attract investment and for the generation of employment in the Petroleum, Chemical and Petrochemical Investment Regions.
Make in India: A Government of India initiative to encourage domestic manufacturing and investment.
Atmanirbhar Bharat: A Government of India initiative promoting self-reliance and domestic production.
Oil and Gas Public Sector Undertakings PSUs: Public sector companies in India involved in the oil and gas industry, and their role in petrochemical production.
Indian Oil Corporation Limited IOCL: An Indian Oil and Gas PSU with a petrochemical production capacity of 4.30 MMTPA.
Mangalore Refinery and Petrochemicals Limited MRPL: An Indian Oil and Gas PSU with a petrochemical production capacity of 1.60 MMTPA.
Gujarat: A state in India with planned petrochemical projects.
LOK SABHA
UNSTARRED QUESTION No. 3117
TO BE ANSWERED ON 7th August, 2025
DEVELOPMENT OF PETROCHEMICAL SECTOR
3117. SHRI PRADEEP PUROHIT:
SHRI BIBHU PRASAD TARAI:
SHRI DINESHBHAI MAKWANA:
DR. HEMANG JOSHI:
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:
(a) the key/major drivers of growth for the petrochemical sector across the country including
in Odisha;
(b) the key/major investment opportunities in the Indian petrochemical industry;
(c) the benefits to the local population and the country's economy from the establishment of
petrochemical plants;
(d) the manner in which the Oil and Gas Public Sector Undertakings (PSUs) are leveraging
their existing infrastructure and expertise to expand into petrochemical production;
(e) the present petrochemical production capacity of Oil and Gas PSUs in the country; and
(f) whether any projects for the above purpose are under implementation and if so, the details
thereof along with their estimated capacities, State-wise?
ANSWER
पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी
((cid:373)ी सुरेशगोपी)
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS
(SHRI SURESH GOPI)
(a) and (b) India’s per capita polymer consumption is about 15 kg against the global average
of about 38 kg. This thus provides an opportunity for expansion of the petrochemical sector in the
country, including in the State of Odisha. The growth is mainly driven by large population
(including growing middle class), huge domestic market, rising disposable incomes, rapid
urbanization, and demand from end-use sectors such as packaging, construction, automotive,
textiles and others. This is further supported by the various policy initiatives bythe Government
including Make in India, Atmanirbhar Bharat, establishment of PCPIRs (Petroleum, Chemical and
Petrochemical Investment Regions) etc.
The Department of Chemicals and Petrochemicals (DCPC) has informed that India’s
Petrochemical sector is delicensed and deregulated sector and driven by market demand. There
are 12 Naphtha /Dual feed cracker complexes in operation and there are seven aromatic
complexes. Major plants are either integrated with refinery or standalone units. The Petroleum,
Chemical and Petrochemical Investment Region (PCPIR) Policy has been notified to attractinvestment and for the generation of employment in the Petroleum, Chemical and Petrochemical
Investment Regions (PCPIRs). PCPIRs are conceptualized in a cluster-based approach with
common infrastructure and support services to provide a competitive environment conducive for
setting up businesses. At present, three PCPIRs have been notified including one in Odisha
(Paradeep) to promote investment and industrial development in these sectors.
The petrochemical sector provides many investment opportunities. These, inter-alia,includes
setting up of greenfield and brownfield petrochemical plants; production of key building blocks
chemicals; production of speciality and performance chemicals; R&D technology development
etc.
(c) The setting up of petrochemical plants creates socio-economic benefits, including the
creation of direct and indirect employment. It also leads to development of infrastructure such as
roads, power, housing and healthcare.Further, these investments help reduce import dependency
in this sector, reduce the trade deficit, and support the growth of downstream MSME sectors like
textiles, packaging, agriculture, healthcare and automotive etc.
(d) Oil and gas companies in India already produce various petrochemicals through associated
integrated cracker units. Many of these companies have plans to increase the production of
petrochemicals by 2030 with enhancement in capacity. These include projects for production of
Poly Vinyl Chloride (PVC), Polypropylene (PP), Butyl Acrylate, High Density Polyethylene
(HDPE), Low Density Polyethylene (LDPE), Iso Propyl Alcohol, Epoxy, Polyester etc.
(e) The current Petrochemicals production capacities of Oil and Gas PSUs are at Annexure-I.
(f) Upcoming Firm Petrochemical Projects by Public Sector Undertakings (PSUs) & Joint
Ventures (JVs) are at Annexure-II.
****ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PART (e) OF LOK SABHA UNSTARRED
QUESTION NO. 3117 TO BE ANSWERED ON 07.08.2025 REGARDING DEVELOPMENT
OF PETROCHEMICAL INDUSTRY.
S. Name of PSU Petrochemicals
No. (MMTPA)
1 Indian Oil Corporation Limited (IOCL) 4.30
2 Mangalore Refinery and Petrochemicals Limited (MRPL) 1.60
3 Bharat Petroleum Corporation Limited (BPCL) 0.82
4 Hindustan Petroleum Corporation Limited (HPCL)- (through its JV 2.20
HMEL – HPCL-Mittal Energy Limited)
5 Oil and Natural Gas Corporation Limited (ONGC)- (through its 1.80
subsidiary OPaL – ONGC Petro additions Limited)
6 GAIL (India) Limited (GAIL) 0.90
7 Brahmapurta Cracker and Polymer Limited (BCPL) 0.30
Total 11.9
Source: Oil& Gas Public Sector Undertakings (PSUs)
****ANNEXURE-II
ANNEXURE REFERRED TO IN REPLY TO PART (f) OF LOK SABHA UNSTARRED
QUESTION NO. 3117 TO BE ANSWERED ON 07.08.2025 REGARDING DEVELOPMENT
OF PETROCHEMICAL INDUSTRY.
Company Location (State) Products Capacity (KTA)
IOCL Gujarat PVC & PP 200 & 500
(Vadodara)
Odisha (Paradip) PX/PTA, PVC, PP, HDPE/LLDPE, 1250, 600, 530,
IPA, Phenol 1150, 208, 300
Odisha (Bhadrak) Polyester Fiber (POY, FDY) 300 (233+60)
Haryana (Panipat) PP (revamp + new), Maleic 125+450, 120, 387,
Anhydride, Styrene, HDPE, PBR 200, 60
Bihar (Barauni) PP 200
BPCL Madhya Pradesh PP, HDPE/LLDPE 550, 1200
(Bina)
Kerala (Kochi) PP 400
GAIL Uttar Pradesh PP, IPA 550
(Usar)
Uttar Pradesh PP 60
(Pata)
Karnataka PTA 1250
(Mangalore)
HRRL Rajasthan PP, HDPE/LLDPE 2000
(Barmer)
NRL Assam PP 360
(Numaligarh)
Petronet LNG Gujarat (Dahej) PP, Propylene 750
Source: Oil& Gas Public Sector Undertakings (PSUs)
****