Bhubaneswar: Union Petroleum Minister Dharmendra Pradhan on Thursday requested Odisha Chief Minister Naveen Patnaik to ensure completion of formalities for the formation of a joint venture (JV) for the proposed plastic park at Paradip.
“The joint venture needs to be ready as soon as possible, which would take care of requirements of investors and work on further infrastructure developments. I therefore request you to personally intervene in the matter and instruct the concerned authorities to complete all the formalities for joint venture formation at the earliest,” said Pradhan in a letter.
Indian Oil and Odisha Industrial Infrastructure Development Corporation (Idco) have proposed to develop the plastic park. Both have agreed to be equity partners in the in the special purpose vehicle (SPV) for the plastic park project.
Informing that six investors have applied for land in the plastic park Pradhan said a polypropylene project would be on stream at Paradip Refinery by February 2019 and units at Paradip plastic park can use polypropylene raw materials as feedstock.
The Chemical and Fertiliser Ministry has aalready sanctioned Rs 40 crore as grant-in-aid to the plastic park as assistance for infrastructure development and Indian Oil will infuse Rs 32.72 crore after signing of the joint venture agreement.
IOCL and Idco had signed a memorandum of understanding (MoU) at the ‘Petrochemicals Investor Conclave 2017’ held in November last year for the project.
The plastic park is proposed over 120 acres of land and will be built at a cost of Rs 1.06 billion.