Lok Sabha Question No. 3117 (UNSTARRED), answered on 2025-08-07
Subject: Development of Petrochemical Sector
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Pradeep Purohit, Shri Bibhu Prasad Tarai, Shri Dineshbhai Makwana, Dr. Hemang Joshi

## LOK SABHA UNSTARRED QUESTION No. 3117

TO BE ANSWERED ON 7 th  August, 2025

## DEVELOPMENT OF PETROCHEMICAL SECTOR

## 3117.   SHRI PRADEEP PUROHIT:

SHRI BIBHU PRASAD TARAI:

SHRI DINESHBHAI MAKWANA:

DR. HEMANG JOSHI:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

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 Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛमंũी ( ŵी सुरे शगोपी )

## 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  attract investment 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 .

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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. No.   | Name of PSU                                                                                                  |   Petrochemicals (MMTPA) |
|----------|--------------------------------------------------------------------------------------------------------------|--------------------------|
| 1        | Indian Oil Corporation Limited (IOCL)                                                                        |                     4.3  |
| 2        | Mangalore Refinery and Petrochemicals Limited (MRPL)                                                         |                     1.6  |
| 3        | Bharat Petroleum Corporation Limited (BPCL)                                                                  |                     0.82 |
| 4        | Hindustan Petroleum Corporation Limited (HPCL)- (through its JV HMEL- HPCL-Mittal Energy Limited)            |                     2.2  |
| 5        | Oil and Natural Gas Corporation Limited (ONGC)- (through its subsidiary OPaL - ONGC Petro additions Limited) |                     1.8  |
| 6        | GAIL (India) Limited (GAIL)                                                                                  |                     0.9  |
| 7        | Brahmapurta Cracker and Polymer Limited (BCPL)                                                               |                     0.3  |
|          | Total                                                                                                        |                    11.9  |

Source: Oil& Gas Public Sector Undertakings (PSUs)

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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 (Vadodara)    | PVC &PP                                                 | 200 &500                       |
| IOCL         | Odisha (Paradip)      | PX/PTA, PVC, PP, HDPE/LLDPE, IPA, Phenol                | 1250, 600, 530, 1150, 208, 300 |
| IOCL         | Odisha (Bhadrak)      | Polyester Fiber (POY, FDY)                              | 300 (233+60)                   |
| IOCL         | Haryana (Panipat)     | PP (revamp + new), Maleic Anhydride, Styrene, HDPE, PBR | 125+450, 120, 387, 200, 60     |
| IOCL         | Bihar (Barauni)       | PP                                                      | 200                            |
| BPCL         | Madhya Pradesh (Bina) | PP, HDPE/LLDPE                                          | 550, 1200                      |
| BPCL         | Kerala (Kochi)        | PP                                                      | 400                            |
| GAIL         | Uttar Pradesh (Usar)  | PP, IPA                                                 | 550                            |
| GAIL         | Uttar Pradesh (Pata)  | PP                                                      | 60                             |
| GAIL         | Karnataka (Mangalore) | PTA                                                     | 1250                           |
| HRRL         | Rajasthan (Barmer)    | PP, HDPE/LLDPE                                          | 2000                           |
| NRL          | Assam (Numaligarh)    | PP                                                      | 360                            |
| Petronet LNG | Gujarat (Dahej)       | PP, Propylene                                           | 750                            |

Source: Oil& Gas Public Sector Undertakings (PSUs)

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