IOC plans Rs 30,000 crore investment in petrochemicals by 2011-12

28-Nov-06

State owned Indian Oil Corporation (IOC), in line with its plans to becoming an integrated energy major, is examining the prospects of further integrating its downstream activities into the petrochemicals business. For this, IOC plans to invest Rs 30,000 crore in petrochemicals by 2011-12, to churn out a turnover of Rs 18,000 crore from petrochemicals business. Implementation of the project will take an estimated 2-3 years once the viability study is complete by this fiscal. This plan encompasses new standalone units to utilise product streams from IOC's existing refineries at Haldia, Gujarat and CPCL to produce value-added products. IOC has set up a linear alkyl benzene plant at Baroda refinery and an integrated paraxylene/purified terephthalic acid plant at Panipat. A naphtha cracker complex with downstream polymer unit is coming up at Panipat and is scheduled for commissioning in 2009. The company is also planning to develop a similar refinery-cum-petrochemicals complex at Paradip. IOC has also shelled out Rs 150 crore towards acquisition of equity in Haldia Petrochemicals. An agreement has been signed with the West Bengal Government for developing a petroleum, chemicals and petrochemicals investment region at Haldia.