Page 36 - Plastics News March 2021

Business news

IOCL and IDCO to develop ONGC acquires 5% stake in

Plastic Park at Paradip Indian Gas Exchange

ndian Oil Corporation Limited (IOCL) and Odisha il and Natural Gas Corp (ONGC) on Wednesday
IIndustrial Infrastructure Development Corporation Osaid it has acquired a 5 per cent stake in Indian
(IDCO) today signed an Memorandum of Understanding Gas Exchange (IGX), joining likes of Adani Total Gas,
(MOU) to develop Paradip Plastic Park. The MoU was Torrent Gas and GAIL in nation's first gas exchange.
signed on a hybrid mode, in the presence of Minister "ONGC signed a Share Purchase and Shareholders
of Petroleum & Natural Gas and Steel Shri Dharmendra Agreement (SPSHA) with the Indian Gas Exchange (IGX)
and the Indian Energy Exchange (IEX) in the presence
of Oil Secretary Tarun Kapoor and ONGC head Shashi
Shanker. The Indian Gas Exchange is a subsidiary of the
IEX - India's premier nationwide, automated electricity
trading platform. Earlier this year, the IEX announced
the strategic investments of 5 per cent each by leading
players in the gas value chain – Adani Total Gas, Torrent
Gas and GAIL (India) Ltd in IGX. "ONGC is aligned to the
government's vision of increasing the share of gas in
the energy mix to 15% by 2030 from the current 6.2%,"
Shanker said. "We believe that the gas markets are
key to facilitating the efficient and competitive gas
Pradhan, Shri Naveen Patnaik, Chief Minister of Odisha trade in India. ONGC is pleased to be part of the Indian
and other dignitaries. Addressing on the occasion, Shri Gas Exchange and we look forward to develop the gas
Dharmendra Pradhan said, "Keeping the enterprise and markets in the country through joint and synchronised
employment generation potential of the plastic sector efforts in the coming years," he said. IGX is India's first
in mind, Government of India has initiated the cluster automated national-level gas exchange for trading in
development of the Industry through its Plastic Park natural gas in the country. It started operations on
scheme. Currently, six such parks have been approved by
the Government of India, with Paradip Plastic Park being June 15, 2020 as a gas trading platform and has been
one of them." It is estimated that around 26 units will
come up at the plastic Park with an estimated investment
of 500 Crores. Shri Pradhan further added that Odisha
would become the nerve centre of industrialisation
through rapid development in petrochemical, chemical,
polymer, textile and fibre sectors. Shri Pradhan also
highlighted the importance of a skilled workforce in
this downstream Industry for which the Institute of
Chemical Technology, Mumbai and IndianOil have joined
hands to set up a world-class Centre of Excellence in
Chemical Engineering and Technology at Bhubaneswar.
" As part of the MoU signing, to attract investments in
downstream polymer industries at Paradip Plastic Park, operating as the gas exchange since December 2020.
IndianOil announced a Special Strategic Incentives The exchange operates under the regulatory framework
scheme. An incentive of Rs 2000/MT on Polypropylene of the Petroleum and Natural Gas Regulatory Board
granules from Paradip Refinery shall be offered to the (PNGRB).The Indian Gas Exchange currently offers trade
manufacturing units located in the Paradip Plastic Park in five contracts, including daily, weekly, weekday,
till 31.3.2030. and is likely to generate direct and indirect fortnightly and monthly, at three physical hubs - Hazira
employment of 6,000 crores. and Dahej in Gujarat and KG Basin in Andhra Pradesh.

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