The Panipat petrochem hub is reported to be delayed further as Indian Oil Corporation (IOC) has decided to quit as an equal partner with HSIIDC. The Haryana State Infrastructure and Industrial Development Corporation (HSIIDC) plans to go ahead with the development of the proposed petrochemical hub at Panipat if IndianOil Corp quits. HSIIDC plans to pump in about Rs 3,700 crore and is scouting for a private partner to develop the petrochemical hub and working out the modalities to decide about the ownership model.
Losses suffered by IOC due to underwriting on subsidies on petroleum products has compelled IOC to withdraw from the project. The Corporation has requested IOC to assure regular supply of petrochemicals from their Panipat refinery for this hub even if they refuse to be a minority partner. Since IOC has expanded the capacity of its Panipat refinery from 6 mln tpa to 12 mln tpa, the petrochemical hub will help utilise the feedstock from the refinery.