Engineers India Ltd will set up a 1 million tonne per annum petrochemical complex near the Kakinada port in Andhra Pradesh. “The detailed project plan for the same is to be ready by March 2017. The 1 mtpa ethylene derivatives petrochemical plant is going to make niche plastic products,” a top EIL official told BusinessLine in Delhi. The project investment should be around Rs 300 billion and EIL is seeking a long-term contract for feedstock supply to be in place before the project actually takes off.
The official said, “Feedstock assurance is needed as this will be a standalone plant. But the technical side on the project per say is all in the final stages.” While land is yet to be acquired for the petrochemical complex, the project has been in the offing for long. The petrochemical complex was earlier envisaged as a refinery-cum-petrochemical project in Andhra Pradesh led by Hindustan Petroleum Corporation Ltd (HPCL) and Gas Authority of India Ltd (GAIL).
Currently the petrochemical plant is a 50:50 joint venture project between HPCL and GAIL. They may induct another strategic partner, HPCL Chairman, M K Surana had told reporters in August.
“The oil ministry is in the final stages of approving the conglomerate that will fund and operate the plant. It will most likely be comprised of domestic players,” another EIL official said.