Indian Oil approves ₹4,382 crore yarn project in Odisha

Bhubaneswar: Indian Oil Corporation Ltd (IOCL) has approved the establishment of a yarn manufacturing project in Odisha.

This project will be developed through IOCL’s joint venture with chemical manufacturer MCPI Private Limited, located in Bhadrak district, with an investment of ₹4,382 crore.

The project will feature a 900 TPD continuous polymerization (CP) unit, along with downstream units for producing draw textured yarn (DTY), fully drawn yarn (FDY), polyester chips, and other related facilities, as detailed by IOCL in a filing with the stock exchange.

The total estimated cost of the project is ₹4,382.21 crore, with Indian Oil’s equity share in the joint venture amounting to ₹657.33 crore.

In its regulatory filing, IOCL confirmed that the board had approved the investment for the yarn project at a meeting held on December 20, 2024. The project will be set up in a 50:50 partnership with MCPI Pvt. Ltd.

Odisha Chief Minister Mohan Charan Majhi expressed his gratitude to IOCL for greenlighting the yarn project in Bhadrak. He emphasized that the initiative would provide a significant boost to Odisha’s economy and create numerous employment opportunities.

“Thank you, @IndianOilcl, for approving the establishment of a Yarn Project worth ₹4,382 Cr in #Bhadrak. This joint venture with MCPI Pvt Ltd is set to significantly boost Odisha’s economy and generate substantial employment opportunities,” Majhi shared on X (formerly Twitter).