State-owned Hindustan Petroleum Corporation Ltd (HPCL) is in talks with potential partners including Total of France to take its Rs45,000 crore petrochemical project forward.
The company has decided to set up the project at the proposed petroleum, chemical and petrochemical investment region (PCPIR) near Visakhapatnam.
The PCPIR in Andhra Pradesh is among four notified by the government so far. The others are Dahej in Gujarat, Haldia in West Bengal and Paradeep in Orissa.
“We are already in talks with potential partners including some PSUs. We are also in talks with Total. By the end of the fiscal, we may ground the project,” said O P Pradhan, executive director (PCPIR), HPCL.
About 10 companies have so far evinced interest in the PCPIR in Andhra Pradesh.
HPCL is the anchor client in the project.
According to Pradhan, HPCL would be keen on a partner willing to supply about 50-60% of the feedstock for the project.
HPCL has already been allotted about 1,500 acres in the PCPIR by the Andhra Pradesh government.
The company is now seeking allotment of another 1,000 crore for expanding the scope of the project. The petroleum major’s plan includes setting up a 350 mw captive power plant in its proposed complex, apart from the 15 mtpa petrochemical facilities. The company already has an 8.5 mtpa petroleum refinery in the vicinity of the proposed project. The refinery capacity too is expected to go up to 15,000 mw, entailing an investment of about Rs10,000 crore.
The proposed petrochemical complex includes setting up of a petrochemical project encompassing aromatics and olefin plants to produce value added products. Aromatics project for production of paraxylene, benzene and PTA, possibly in a phased manner and a naphtha cracker for production of olefins (ethylene, propylene), and other downstream units too are part of the company’s plan.