Odisha Begins Land Acquisition Process for Rs 58,042 Crore Petrochemical Complex Near Paradip

Odisha’s Revenue department has notified a social impact assessment for 219.617 acres in Jagatsinghpur district’s Erasama tehsil, marking the first formal step toward acquiring land for a Rs 58,042 crore petrochemical complex linked to Indian Oil Corporation’s proposed dual-feed naphtha cracker at Paradip.

What triggered this land acquisition process?

The notification covers private land at Badakantakandha village under Erasama tehsil, falling under the Rehabilitation and Resettlement Act, 2013. The Odisha Industrial Infrastructure Development Corporation, known as IDCO, will serve as the acquiring body. Jaipur-based Green India has been appointed to conduct field surveys under the supervision of the Nabakrushna Choudhury Centre for Development Studies, the state’s designated Social Impact Assessment unit, with results expected within four months.

How is this project connected to Indian Oil Corporation?

The petrochemical complex is planned as a joint venture anchored to IOC’s proposed dual-feed naphtha cracker at Paradip, envisioned as the centrepiece of a downstream chemicals corridor along Odisha’s coast. IOC signed an investment agreement with the state government at the Odisha Investors’ Meet held in New Delhi in April 2025. A naphtha cracker produces ethylene, propylene and other feedstocks that supply numerous derivative industries, and locating the petrochemical complex alongside it would allow these derivatives to be processed locally, strengthening the industrial value chain around the existing Paradip refinery.

What does the social impact assessment process involve?

Under the 2013 land acquisition law, no private land acquisition can proceed without a social impact assessment, which determines whether the project qualifies as serving a public purpose and ensures affected families are properly accounted for. The process includes household surveys, focused group discussions, consultations with landowners and villagers, and formal documentation of public opinion. Once completed, the report will be published in Odia at gram panchayat, village and ward levels, alongside copies at collector, sub-collector and block development officer offices, feeding into a mandatory public hearing.

What consent thresholds apply to this acquisition?

Consent requirements depend on how the project is eventually classified. A purely private-sector project requires 80 percent consent from affected families, while a public-private partnership structure lowers the threshold to 70 percent. Given that the venture involves state-owned IOC, this classification will significantly influence how the consent process unfolds.

Why does the project location matter?

Badakantakandha village sits in a region already shaped by industrial activity linked to the Paradip port and refinery cluster, meaning residents are relatively familiar with land acquisition processes, even as cooperation on this specific project remains to be seen through the upcoming survey and consultation phase.