ODISHA PCPIR:

DEVELOPMENT OF EAST COAST MARKETS

Vishal K Dev, IAS Chairman & Managing Director Odisha Industrial Infrastructure

Development Corporation (IDCO)

12.02.2015

ODISHA

INDUSTRIAL OVERVIEW OF ODISHA

Mineral Reserves (% of India)

Chromite (95%)

Nickel (92%)

Manganese (40.4%)

Bauxite (55%)

Iron ore (33%)

Coal (24.50%)

METAL MAKING CONTRIBUTION

STEEL ALUMINIUM

20% 50%

INDUSTRIAL INFRASTRUCTURE

Inv. Regions / Zones SEZ IND. ESTATES

4 9 106

Industrial Clusters Plastic& Polymer

Aluminium Downstream

Steel Downstream IT & ITES ESDM

Food Processing

2 4 5 3 1 3

The capacity addition in various key sectors in the last decade has ranged from 3.5 to 12 times

THE GROWTH STORY OF LAST DECADE

Sector 2000 2013 Growth

Power Gen (in MW) 3679 13311 362%

Alumina (in Mn MT) 0.8 3.5 438%

IT Exports (In Mn USD) 53.25 322.2 605%

Aluminium (in Mn MT) 0.38 2.51 661%

Steel (in Mn MT) 2.00 15.04 752% Technical Education (number of seats) 26328 154414 587%

Port capacity (in Mn MT) 12.85 156 1214%

ODISHA…….. MOST FAVOURED DESTINATION FOR INVESTMENT

The capacity addition in various key sectors in the last decade has ranged from 3.5 to 12 times

THE GROWTH STORY OF LAST DECADE

Sector 2000 2013 Growth

Power Gen (in MW) 3679 13311 362%

Alumina (in Mn MT) 0.8 3.5 438%

IT Exports (In Mn USD) 53.25 322.2 605%

Aluminium (in Mn MT) 0.38 2.51 661%

Steel (in Mn MT) 2.00 15.04 752% Technical Education (number of seats) 26328 154414 587%

Port capacity (in Mn MT) 12.85 156 1214%

OUR PARTNERS IN GROWTH

PARADEEP PCPIR- LOCATION

Location: Paradeep

IOCL is the Anchor Industry

Total Area : 284.14 Sq KM

Processing & Non Processing Area:

Processing Area: 123. 00 Sq Km Non processing Area :161.14 Sq KM

Land Availability :

54.00 Sq Km already operational 5.00 Sq Km acquired for Industries - ready for allotment 30.00 Sq Km under acquisition

The preliminary Master Plan & preliminary Environmental assessment of the PCPIR completed by L&T Ramboll

IDCO is the nodal agency for development PCPIR

Paradeep Investment Region Development Ltd – SPV formed for implementation of the PCPIR. CEO Recruited and other man power to be recruited soon for effective functioning of PIRDL.

Jagatsinghpur -

Kendrapara

Districts

Existing Chemical & Petrochemical Industries:

IFFCO : 2MMTPA fertilizer unit of IFFCO producing DAP, Phosphoric Acid & Sulphuric Acid.

Paradeep Phosphate Limited: A premier fertilizer unit producing 1.25 MMPTA of DAP and other phosphatic fertilizers.

Goa Carbon Limited : Manufactures 0.125 MMPTA of Calcined Petroleum Coke.

Investments:

Investment of Rs 39,000 Crores already made in PCPIR

Employment generated:

32000 people currently employed in the PCP segment only

o 15 MMTPA Grass-root refinery being set up by IOCL with an investment of Rs 32,000 Cr.

o Total Area allotted to IOCL : 3344 Acres

o Project is 96% completed and shall be commissioned by Mar 2015

o Road map for the Petrochemical feedstock potentials from IOCL refinery

o Polypropylene………………………700 KTA

o Mono Ethylene Glycol……………..400 KTA

o Petcoke…….………………….……1250 KTA

o Paraxylene……………………….....200 KTA

Petrochemical feedstock by IOCL

Polypropylene

• 700 KTA Polypropylene plant with an investment of Rs 3150 Crores by IOCL,

• Time Schedule – To be Commissioned by Sep 2017

• Availability of feedstock will provide impetus to PP based industry in Eastern India

• Bi-axially oriented PP (BOPP) film, Injection molding, fiber & filament, sheets & thermoforming, Tubular quenched PP (TQPP), PP raffia(woven sacks) etc.

Mono Ethylene Glycol

• 400 KTA MEG Plant with an investment of Rs 4000 Crores

• To be Commissioned by 2019

• Eastern India today does not have any Ethylene Glycol Capacity

• Intermediate for Polyester chips, fibers, PET bottle, PET chips, polyester yarn etc

PETCOKE GASIFICATION

• 1250 KTA Pet-coke based synthetic ethanol project being considered by IOCL

• MoU signed with technology provider for detailed study

• Feasibility to be completed by June 2015

• Project to be commissioned by 2021-22

• Investment anticipated – Rs 18000 Crores

Paraxylene-PTA Complex

• IOCL to set up a 200 KTA Paraxylene-PTA complex at Paradeep

• Project activities to start by Dec 2016 and to be commissioned by 2020

• Feedstock for synthetic film, yarn and textile industries

Petrochemical Feedstock by IOCL

TRANSPORT INFRA….CONNECTIVITY

Port

• Paradeep is a major port with a capacity of 108.50 MMTPA

• 5 MMTPA LNG Terminal is being developed by GAIL at Paradeep

• Dhamra is an upcoming port being developed by DPCL with capacity of 100 MMTPA out of which 25 MMTPA operationalized

• 5 MMTPA LNG Terminal is being developed by IOCL at Dhamra

Road

• 4 lane NH 5 A (being upgraded to 6 lane)

• 2 Lane Cuttack-Paradeep already completed.

• A 4 lane road connecting Paradeep to Bhubaneswar is being taken up

• A Coastal Corridor connecting PCPIR with Dhamra & Astarang Port is being taken up

Rail & Logistics Hub

• PCPIR Connected with a Broad Gauge double line

• New Paradeep – Haridaspur rail line to be operational by 2016

• CONCOR building a new Logistics Hub in PCPIR over 60 Ac of land

TRANSPORT INFRA….CONNECTIVITY (NW-5)

MoU signed between Government of Odisha, Inland Waterways Authority of India

(IWAI), Paradeep Port Trust and Dhamra Port for development of the stretch between

Talcher to Paradeep and Dhamra of NW-5 for developing an inland navigation system for

movement of Cargo from the industries and mines to the ports in two phases.

IDCO, on behalf of State Government, shall spearhead the SPV for developing

permanent terminal facilities for bulk cargo handling at Jokadia/Pankpal and other

locations. SPV would operate, maintain and manage the same.

SPV formation is underway.

EXTERNAL LINKAGE MAP

OTHER INFRASTRUCTURE

Power

• Total estimated power consumption at PCPIR is 2000 MW in its ultimate phase

• 1360 MW power plant planned by SPI Ports Ltd at Mahakalpada

• Existing 220 KV double line circuit to the PCPIR region operated by OPTCL

• PCPIR to be connected to the 400 KV Grid and

• A new 400 KV grid substation being constructed by OPTCL

Water

• Total water requirement is 620 MLD ( 310 MLD in each phase)

• WAPCOS has prepared the DPR for the water availability of the region

• Water for the 1st phase of PCPIR to be sourced from radial wells of Mahanadi River (site identification done)

• Detailed Project Designs being undertaken by IDCO

LNG Terminals & Natural Gas Pipeline Projects

• 5 MMTPA LNG Terminal proposed at Paradeep by GAIL

• 5 MMTPA LNG Terminal proposed at Dhamra by IOCL

• Surat-Paradeep Gas Transmission Pipeline being developed by GAIL

Land Availability : Out of total 123.00 Sq Km of processing area

54.00 Sq KM already operational by existing industries 500 Acres of land acquired and another 700 Acres to be acquired soon. Infrastructure

development underway and by End 2015, land shall be ready for allotment 30.00 Sq Km ~ 7500 Acres of land is under acquisition

Land & Industrial Infrastructure

Industrial Infrastructure

1st phase Industrial Park being developed near

IOCL refinery over 475 Acres of Land

Land allotment initiated

Plastic Park – 120 Acres

Concor Logistics park – 60 Acres

400 KV substation – 40 Acres

Balance land for allotment – 242 Acres

2nd phase Industrial park to be developed over

additional 700 Acres of land

PLASTIC PARK AT PARADEEP

Area: 120 Acres near IOCL refinery

Project cost: Rs 106 Crores

Grant from GoI – Rs. 40 .00 Crores

Equity (IDCO) – Rs. 29.31 Crores

Debt – Rs 15.87 Crores

Advance from IDCO – Rs 21. 60 Crores (Land)

Common Facility Center : CIPET to operate the facility

SPV Formed “Paradeep Plastic Park Pvt Ltd”.

Raw Material Linkage : Polypropylene & Ethylene derivatives to be provided by IOCL

Total Investment envisaged : Rs 486 crores employment potential of about 4200 direct

Project to be operationalized by 2016

Land allotment to start by end 2015

Status:

Site Development activities underway – completion by mid-2016

ENVISAGED INVESTMENT IN PCPIR

Investment in Paradeep PCPIR is Rs. 277,734 crores in both the phases

S. N Sector Investment in (

Crores)

1.        Petroleum & Petrochemicals Sector 234,000

2.        Chemicals and fertilisers 3,500

3.        Ancillary sectors 3,500

4.        Housing & Allied Infrastructure 23,100

5.        External Infrastructure 13,634

Total (in ) 277,734

• Rs 39,000 Crores already invested including Rs 30,000 Crore by IOCL and about 32000 people currently employed in the PCP segment only

• Investments in Infrastructure underway • DPR, EIA, Marine EIA studies underway for PCPIR.

PROPOSED INCENTIVES IN IPR’2014 In the new IPR, Petrochemicals sector has been proposed as PRIORITY sector with following incentives. •100% Exemption from Stamp duty. •100% Reimbursement of Entry Tax on plant & machinery till commencement of operation. •100% Reimbursement of Entry Tax on raw materials for 5 Yrs. •100% Reimbursement on VAT for 5 Yrs from date of commencement of operation. • Interest Subsidy @ 5%/annum on term loan for 5 Yrs. •Electricity duty exemption for 5 Yrs up to 5 MVA.

Sl. No.

Major Activities Status

1 Approval & Notification

Paradeep PCPIR approved by Government of India PCPIR area to be notified by the State Government under appropriate legislation(New Investment Region Act under approval of Govt).

2 Feasibility Report

Preliminary Feasibility studies & Master Plan prepared through IL&FS & L&T Ramboll.DPR & Detailed Master Plan being prepared.

3 Land acquisition

Out of total 123.00 Sq Km of processing area • 54 Sq Km already operational • 5.00 sq KM acquired and being planned for Downstream

Industries ready for allotment • 30.00 Sq Km under acquisition

4 Feedstock

2017- Polypropylene 700 KTA 2019 – MEG 400 KTA 2020 – Paraxylene PTA 2021 - Ethanol, Acetic Acid / Vinyl Acetic Monomer

5 Clearances and approvals

Single Window Clearance Committee framework in place in Odisha to facilitate investment proposals

Preparedness of the State for PCPIR

Sl. No.

Major Activities

Status

6 Water Water to be made available from existing sources. IL&FS Water Ltd to set up a desalination plant(project under consideration)

7 Road Well connected through NH 5A (six laning being undertaken by NHAI) New roads planned to connect PCPIR with Bhubaneswar and other ports (Coastal Highway)

8 Power To be made available on 132 / 33 KV line. PCPIR being connected through 400 KV transmission ring of Odisha by OPTCL.

9 Gas

30 MMSCMD Surat – Paradeep gas pipeline being developed by GAIL. And IOCL is also putting up a 5 MMTPA LNG Terminal at Dhamra port near Paradeep. GAIL has also signed an MOU with PPT for LNG terminal at Paradeep.

10 Skilled Manpower

Odisha has over 100 plus engineering and management colleges including IIT, IIIT, CIPET, AIIMS, XIMB etc. CIPET has an Advanced learning Center at Bhubaneswar and also new training center at Paradeep shall be managed by CIPET.

Preparedness of the State for PCPIR (2)

GOVERNMENT OF ODISHA THANK YOU

WE WELCOME INVESTORS TO PARADEEP