Indian Oil has approved its investment in a proposed yarn project being set up in the state in a joint venture with a leading chemical company MCPI Pvt Ltd.

Sources said the board of central public sector enterprise has approved an investment of `657 crore for the yarn project in Bhandaripokhari textile park of Bhadrak district. The project will come up at a cost of around Rs 4,382 crore.

“The board has approved the project consisting of 900 tonne per day continuous polymerisation plant with downstream units of draw textured yarn, fully drawn yarn and polyester chip and other associated facilities at Bhadrak at an estimated cost of Rs 4,382.21 crore through a joint venture of MCPI Pvt Ltd with IndianOil’s equity contribution of Rs 657.33 crore,” IOC said in its filing to national stock exchange.

Last year, the state government had approved Indian Oil Corporation Limited’s project to establish the polyester products manufacturing unit in the textile park at Bhandaripokhari. The project would generate employment for around 4,300 people.

CM Mohan Majhi has thanked IndianOil for approving the yarn project. “This joint venture with MCPI Pvt Ltd is set to significantly boost Odisha’s economy and generate substantial employment opportunities,” he posted on X.