Bharat Oman Refinery (BORL) plans to construct a petrochemical plant near its upcoming 6 million tpa crude oil refinery at Bina, Madhya Pradesh. The petrochem plant is expected to come onstream after the refinery begins operation in January 2010.
BORL, a 50:50 joint venture between Bharat Petroleum Corporation (BPCL) and Oman Oil Company, is mulling a 1 mln tpa petrochemical unit at an investment outlay of Rs 10,000 crore. BORL is reported to have approached the Madhya Pradesh government, seeking 1,000 acres of land to construct the petrochemical unit.
BORL last week filed a draft red herring prospectus with market regulator Securities and Exchange Board of India (Sebi) to raise around Rs 2,900 crore through a public issue. The money raised from through share sale will be used to fund the refinery at Bina. Prior to the share sale, BORL will privately place shares worth around Rs 900 crore with its promoter BPCL and Rs 26.90 crore worth shares with the Madhya Pradesh government.
The company has already signed a product offtake agreement with BPCL, the country's second largest marketer of petroleum products. The products from the refinery will be marketed in central and north India. BPCL is planning to lay a pipeline connecting the Bina unit with its existing product pipeline between Mumbai and Bijwasan near Delhi.