Relief for Kerala petrochemical park as global biggies show interest

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Kochi | Published: December 13, 2017 3:23:30 AM

Mitsubishi Corporation, BASF and Manali Petrochemicals are among some of the companies that have evinced interest in setting up units in the petrochemical park planned by the Kerala government, senior officials of the state-run Kerala Industrial Infrastructure Development Corporation (KINFRA) said on Tuesday.

kerala petrochemical, kerala petrochemical row, companies interested in kerala petrochemicalThe Kerala government is promoting the petrochemical and pharma park with BPCL as the anchor investor in 490 acres to utilise the raw materials from the Propylene Derivative Petrochemical Project of BPCL Kochi Refinery. (Reuters)

Mitsubishi Corporation, BASF and Manali Petrochemicals are among some of the companies that have evinced interest in setting up units in the petrochemical park planned by the Kerala government, senior officials of the state-run Kerala Industrial Infrastructure Development Corporation (KINFRA) said on Tuesday. The Kerala government is promoting the petrochemical and pharma park with BPCL as the anchor investor in 490 acres to utilise the raw materials from the Propylene Derivative Petrochemical Project of BPCL Kochi Refinery. “The objective is to set up downstream units, which can utilise the niche petrochemical products from Kochi Refinery for manufacturing a number of products like adhesives, plasticisers, water-based chemicals, sealants, among others,” K A Santosh Kumar, managing director of KINFRA said. He added that several companies have shown interests in setting up pharma and petrochemical plants in the state after the switch over to GST. “BPCL Kochi Refinery is expanding its product portfolio through its ongoing Propylene Derivative Project,which is expected to be commissioned in early 2019. This project will make available specialty petrochemicals like Acrylic Acid, Butyl Acrylate, Ethyl Hexyl Acrylate, Normal Butanol, Iso Butanol and Ethyl Hexanol,” said A N Sreeram, GM,Petrochem Project of BPCL.

These and other raw materials produced at the unit can be used by downstream companies for manufacture of a range of products including acrylic paints, solvents, coatings, adhesives and resins. As part of Rs 20,000 crore Integrated Refinery Expansion Project (IREP) of BPCL Kochi Refinery, around five lakh tonnes of propylene is expected to be generated. The propylene derivative plant is estimated to cost Rs 5,200 crore, BPCL sources said.

BPCL Kochi is also studying the feasibility of producing another set of speciality petrochemicals like Propylene oxide, Propylene glycol, Polyether Polyols, Ethylene Oxide and Ethylene Glycol, which will also provide opportunities for downstream small and medium scale industries. KINFRA will develop the land and create necessary industrial infrastructure for the park. Kerala State Industrial Development Corporation (KSIDC) will provide the necessary financial assistance to set up units coming up in the park.

The interest rate band is a best-in-class 9.25% to 11.25% floating rate based on credit rating. KSIDC will also facilitate various approval and clearances required for setting up the industrial ventures, sources said.

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