Shares of Indian Oil Corporation pared early gains on March 22 after the state-run fuel retailer said it would prepare a detailed feasibility report to build a Rs 61,077 crore petrochemical complex at Paradip in Odisha.

In a March 21 regulatory filing, the company said the project would improve its petrochemical intensity index and reduce risk in its fossil fuel business.

“In its meeting held on March 21, 2023, the Board of Directors of Indian Oil Corporation has approved ‘in principle’ the commencement of pre-project activities, including the preparation of a detailed feasibility report for the establishment of the Paradip petrochemical complex at Paradip, Odisha, at an estimated project cost of Rs 61,077 crore,” the document said.

The stock was flat at Rs 79.51 at 10:35 am on the BSE after opening about 0.5% higher.

Indian Oil Corporation is the largest state-owned refiner, with an annual capacity of 70.05 million metric tons. It is also one of India’s leading petrochemical producers.

The company intends to increase the petrochemical intensity of converting crude oil into petrochemicals to 15% from the current 7% to cushion the impact of oil market volatility and help India become self-reliant in this critical sector.

The IOC said it was keen to develop its existing refinery in Haldia, West Bengal, into a petrochemical complex to “maintain operating profitably”.