Mukesh Ambani's petrochem plans

14-Mar-06

Mukesh Ambani led RIL is setting up special economic zones (SEZ) as large integrated world-class townships spread over 1,00,000 acres at an initial investment of Rs 25,000 crore (Rs 250 billion). The company has already taken over a 10,815 acres Navi Mumbai Special Economic Zone and has signed a deal with the Haryana government for setting up a "second Gurgaon" - an SEZ over 25,000 acres. The Hyderabad SEZ will be devoted to petrochemicals that will use the Krishna-Godavari basin gas as feedstock and the SEZ in West Bengal envisages a mega biotech venture. The expansion plans include doubling the Jamnagar refinery capacity to 60 million tons (1.2 million bpd), to be part financed by the largest IPO in the world for any greenfield project. When completed in 2008, it will be the largest petroleum refinery at any single location, anywhere in the world. Apart from the refinery expansion {cost around Rs 25,000 crore (Rs 250 billion)}, the company will spend Rs 17,600 crore (Rs 176 billion) in upstream oil and gas over the next few years and Rs 2,500 crore (Rs 25 billion) to build a new 2,80,000 tpa polypropylene plant. Rs 3,000 crore (Rs 30 billion) will be invested to expand polyester production capacity by 550,000 tons this financial year, taking its total polyester capacity to 2 million tons The acquisition of German firm Trevira last year has already made Reliance the largest polyester fibre and yarn producer in the world. Another Rs 1,000 crore (Rs 10 billion) will be spent on Nocil and Dyechem. With this, RIL will be the 11th largest petrochemical company in the world.