South Asian Petrochem Ltd (SAPL)’s PET plant has been delayed due to differences between Egypt's ministries of petroleum and transport over land lease agreement. The company expects the US$170 mln project that requires 30 acres of land, to achieve financial closure this fiscal and plans to commence construction of the plant next June. A fresh piece of land has been allotted for the project on a free-hold basis. General Authority of Investment & Free Zones (GAFI), the nodal agency for investment and free zone projects in Egypt, has appreciated the company’s efforts in identifying new land and has agreed to continue to grant free zone status to the project in the new location. The company plans to up revise plant size from the planned 900 tons/day to 1200-1500 tons/day, and may have to rework the project cost.
The company also plans to set up a polycarbonate plant at Haldia, for which it has entered into a technical license with Japan’s Asahi Kasei Chemicals. Under the agreement, South Asian Petrochem will enjoy exclusivity for a period of seven years and no other licence will be given by Asahi Kasei Chemicals in India. The planned plant capacity of 130,000 tpa may be halved to 65,000 tpa. The cost of the plant is likely to be Rs 1,000 crore.
27-Jul-09 
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