New Delhi, July 12: The state-owned Indian Petrochemicals Corporation Ltd (IPCL) has chalked out a Rs 1,000 crore plan to increase its presence in the lucrative petrochemicals sector through formation of three joint venture projects.The "navratna" public sector undertaking has tied up a Rs 350 crore joint venture with US firm Vinmar Petrochemicals to form the joint venture "Indian Petrovin Ltd", top company officials said.
The other venture "Gujarat Acrylic" is with Malwa Cotton at a cost of nearly Rs 400 crore while the third venture will involve investment of Rs 50 crore in the equity of synthetic fibre maker GSL Ltd, they said.
These investments are in addition to the company's ongoing projects worth over Rs 6,000 crore that are at various stages of completion. The three ventures, where production will start from 2001-02, would be located near IPCL's Gandhar complex, the sources said.
Indian Petrovin would manufacture poly methyl acrylic (PMA) and mono methyl acrylic (MMA), both raw materials foracrylic sheets and IPCL will initially invest Rs 65 crore through equity with an equal amount from the US company.
The 50:50 joint venture company Gujarat Acrylic is for manufacturing 50,000 tonnes of acrylic fibre with IPCL and Malwa Cotton bringing in Rs 65 crore each as equity.
IPCL would also invest Rs 50 crore in the equity capital of GSL Ltd along with capital expediture as a strategic partner in the spinning mill of acrylic and blended yarns.
The value-added products produced by these three joint ventures will use acrylonitrile (ACN) as the basic raw material produced by IPCL at its Dahej plant in Gujarat.
Apart from these IPCL has already invested Rs 6,000 crore for manufacturing ACN and on the jetty facility with capital expenditure of Rs 1,400 crore at Gandhar complex.
Phase-I of the project has already started production and the second phase would be complete by the end of this year.
The Nagothane complex costing Rs 900 crore would manufacture alpha olefins, linear low density polyetheylene (LLDPE) and olefins. Production at this complex is expected to start in the third quarter of 1998.
The Baroda complex has already set up additional facility to manufacture olefins and low density poly ethylene (LDPE) with an investment of Rs 2,000 crore.
IPCL also intends to invests additional Rs 1,200 crore through joint ventures in the field of refining and power, the sources added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
