IOCL’s ₹58,042 Crore Paradip Petrochemical Project Moves Ahead as Odisha Begins Land Acquisition – Indian PSU

The Odisha government has formally initiated the land acquisition process for the proposed ₹58,042 crore petrochemical complex in Jagatsinghpur district, marking a significant step towards establishing a major downstream petrochemical hub around the Paradip refinery.

The Revenue Department has issued a notification under Section 4 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, for the acquisition of 219.617 acres of private land at Badakantakandha village under Erasama tehsil. The acquisition will be carried out through the Odisha Industrial Infrastructure Development Corporation (IDCO).

The mega petrochemical complex is part of a joint initiative between the Odisha government and Indian Oil Corporation Limited, linked to the company’s proposed dual-feed naphtha cracker project at Paradip. Indian Oil had signed an investment agreement with the state during the Odisha Investors’ Meet held in New Delhi in April 2025.

With an estimated investment of ₹58,042 crore, the project is expected to substantially strengthen the downstream petrochemical ecosystem around the Paradip refinery, attract ancillary industries, generate employment, and boost industrial development in Odisha.

Social Impact Assessment Underway

As mandated under the 2013 Land Acquisition Act, the government has commenced the Social Impact Assessment (SIA), a statutory exercise to evaluate the social consequences of the proposed acquisition and determine whether the project serves a public purpose.

Jaipur-based Green India has been appointed to conduct the assessment under the supervision of the Nabakrushna Choudhury Centre for Development Studies, the state’s designated Social Impact Assessment unit.

The assessment process will include:

• Household surveys
• Consultations with affected landowners and villagers
• Focus group discussions
• Documentation of public opinion

The findings will form the basis for a public hearing under the Odisha Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules, 2016.

Consent of Affected Families Mandatory

According to the notification, projects involving private companies require the consent of 80% of affected families, while public-private partnership (PPP) projects require consent from at least 70% of affected families before land acquisition can proceed.

The Social Impact Assessment is expected to be completed within four months. The final report will be made available in Odia at gram panchayats, village and ward offices, as well as the offices of the Collector, Sub-Collector, and Block Development Officer. It will also be uploaded on the Odisha government’s website before the next phase of the land acquisition process begins.

The proposed Paradip petrochemical complex is expected to become one of India’s largest industrial investments in the petrochemical sector and further strengthen Odisha’s position as a key manufacturing and energy hub.