BPCL to Set up Polypropylene Unit at Kochi

The Board of Bharat Petroleum Corporation (BPCL) has decided to shelve the planned polyols project at its Kochi refineries due to cost overrun. Instead, the boards has decided to set up a Polypropylene unit at Kochi.

The said polyols project at the Kochi Refinery was approved by the Board in September 2018. The project was developed further by carrying out activities such as award for licensing of technology and related activities to licensors and appointing project management consultant.

During the development of the project, cost estimates with an accuracy level of +/- 10 percent were prepared based on front end engineering design of the facilities. However, the revised cost estimates turned out to be much higher than the original estimate mainly on account of increase in equipment and material cost.

As this has adversely affected the project economics, the Board as stated above has approved the proposal to discontinue the said polyols project.