IOC plans to invest Rs 30,000 crore in petrochemical business

Chandigarh, Apr 14 (UNI) The Indian Oil Corporation (IOC) plans to invest about Rs 30,000 crore in petrochemical business in a phased manner in India and abroad.

This was stated by IOC Chairman Sarthak Behuria at a function organised to sign a memorandum of understanding (MOU) between Haryana State Industrial Development Corporation (HSIDC) and IOC for creation of a Special Purpose Vehicle so as to develop a world class petrochemical hub at Panipat.

He said the IOC was in the process of commissioning its Purified Terephthalic Acid (PTA) plant at Panipat at an estimated cost of Rs 5100 crore. This would be a new business line growth.

For Haryana, he said, the project would lay the foundation for creation of a world class petrochemical hub in the state, which would result in significant industrial activities attracting investments, generating employment and revenue for the state.

Speaking at the MOU signing function, Haryana Chief Minister Bhupinder Singh Hooda said that the world class petrochemical hub being developed over an area of 5,000 acres of land at Panipat would generate an investment of about Rs 25,000 crore and provide employment opportunities to more than 20,000 persons.

Mr Behuria said the Naphtha cracker project under the proposed hub would cost about Rs 11,000 crore. It would consist of Naphtha cracker for generating 800,000 metric tonnes of ethylene per year and 600,000 metric tonnes of propylene per year.

The hub also envisaged downstream polymer units for production of high density polyethelene, linear low density polyethelene, polypropylene and mono ethylene glycol.

The major source of raw material for this project would be captive Naphtha generated from IOC's refineries in Panipat, Mathura and Gujarat. With this investment, he said, the total investment of Indian Oil Corporation in Panipat complex would reach to a huge level of Rs 20,000 crore, the largest investment by Indian Oil at any single location so far.

Mr Behuria hoped that the project would attract investment in a number of ancillary units like blow moulding, injection moulding, film and pipe production and the multiplier impact thereof would generate an overall investment of Rs 25,000 crore to Rs 28,000 crore in the state.

He said that a special cell has been created for setting up of petrochemical hub and dialogue with a number of industrial houses has been initiated for setting up of ancillary units in the petrochemical hub. The vision was to develop a world class petrochemical hub, which would be as good as Jurong Island of Singapore.

He described Haryana as one of the most progressive states and the petrochemical hub as a major milestone of cooperation between the Indian Oil Corporation and HSIDC. He said that in a highly competitive and surplus domestic and export market, Indian Oil has achieved over 34 per cent market share in domestic market.

While replying to questions of media persons, the IOC Chairman said the share of the IOC and HSIDC was yet to be decided.

In reply to another question, he said that the expansion of the refinery was now on commissioning phase.

Later replying to questions of media persons, Haryana Chief Minister Bhupinder Singh Hooda said that he had spoken to the Chairman of IOC regarding procurement of Petcoke, a byproduct of the oil refinery, to generate 500 MW of power.

He said that the State Government was trying to get additional power for consumers from possible sources.

The Financial Commissioner and Principal Secretary, Industries, Mr P K Chaudhary said that a consultant would be appointed who would advise on equity to be shared for the petrochemical hub.

He said that apart from the HSIDC and IOC, the petrochemical hub would also have a third partner for this joint venture project, but added that the third partner would be identified.

HSIDC Managing Director Rajiv Arora said that Naphtha Cracker project would to go on stream by 2009 and the downstream industry would come up the same time.

UNI VKJ MP BST1827