Planned to be built with a potential partner, the oil to petrochemical complex will be equipped to have an annual capacity of 7.5 million tonnes.
Essar made the announcement at the third edition of the Make in Odisha Conclave’22 event.
The project forms part of the firm’s winder plan to launch several projects in Odisha, including building a 14 million tonnes per annum (Mtpa) export oriented pelletizing complex, a pellet plant at Paradip port, and a 250km slurry pipeline.
Estimated to cost Rs120bn ($1.47bn), the pelletizing complex will feature an iron ore fines beneficiation plant at Keonjhar.
In partnership with an international player, Essar is also planning to develop a 7.5Mtpa crude to petrochemical complex (CTC), with an investment of approximately Rs400bn ($4.92bn).
Essar Capital director Prashant Ruia said: “Essar’s pioneering investment in setting up a 12Mtpa iron ore pellet plant, and a 260km slurry pipeline to Paradip in 2009, was instrumental in Odisha realising its potential and becoming the national leader in the minerals and mining sector.
“Essar is once again poised for making significant fresh investments in Odisha in the sectors of metals and mining and energy, with the state being one of the most attractive destinations.”
The latest move comes a day after Essar Group’ subsidiary Essar Oil UK said it plans to construct a carbon capture and storage (CCS) facility at its Stanlow refinery in Cheshire, UK, with an investment of £360m ($432m).