Odisha initiates land acquisition with a Social Impact Assessment for the ₹58,042-crore Paradip petrochemical complex, anchored by Indian Oil Corporation
OdishaPlus Bureau
The Odisha government has initiated the land acquisition process for a proposed ₹58,042-crore petrochemical complex at Paradip by issuing a notification for a Social Impact Assessment (SIA) covering 219.617 acres of private land in Jagatsinghpur district.
The Revenue and Disaster Management Department has notified the SIA for land at Badakantakandha village under Erasama tehsil, marking the first formal step towards acquiring land for the mega project, which will be linked to Indian Oil Corporation’s (IOC) proposed dual-feed naphtha cracker at Paradip.
The land acquisition will be undertaken by the Odisha Industrial Infrastructure Development Corporation (IDCO) under the provisions of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Jaipur-based Green India has been appointed to carry out the field survey under the supervision of the Nabakrushna Choudhury Centre for Development Studies, Odisha’s designated Social Impact Assessment unit. The assessment is expected to be completed within four months.
The proposed petrochemical complex is planned as a joint venture centred around IOC’s dual-feed naphtha cracker project, envisioned as the anchor of a downstream petrochemical and chemicals hub along Odisha’s coastline.
IOC had signed an investment agreement with the Odisha government during the Odisha Investors’ Meet held in New Delhi in April 2025.
The naphtha cracker is expected to produce key petrochemical feedstocks such as ethylene and propylene, which serve as raw materials for a wide range of downstream industries. Establishing the petrochemical complex adjacent to the cracker is expected to enable local processing of these products, deepen the industrial value chain and enhance the economic potential of the existing Paradip refinery and port ecosystem.
Under the 2013 land acquisition law, a Social Impact Assessment is mandatory before private land can be acquired. The assessment evaluates whether the project serves a public purpose, identifies families likely to be affected and examines the project’s social and economic implications.
As part of the process, survey teams will conduct household surveys, focus group discussions, and consultations with landowners and residents, while documenting public opinion. Upon completion, the SIA report will be made available in Odia at gram panchayat offices, villages, and wards, as well as at the offices of the Collector, Sub-Collector, and Block Development Officer, before a mandatory public hearing is conducted.
The law also prescribes consent requirements based on the nature of the project. While acquisition for a purely private project requires consent from at least 80 per cent of affected families, the threshold is reduced to 70 per cent for projects executed under a public-private partnership model. The eventual classification of the Paradip venture, involving state-owned IOC, will determine the applicable consent requirement.
Badakantakandha village lies within the industrial belt surrounding Paradip port and the refinery, where residents have experienced previous land acquisition exercises. However, the level of public support for the proposed petrochemical complex is expected to become clearer during the upcoming survey, consultation and public hearing process.