Kolkata-based Haldia Petrochemicals is planning to invest Rs 62,714 crore in setting up a 12 Million Tonne Per Annum (MTPA) refinery-cum-petrochemical complex near Kakinada in Andhra Pradesh.
The proposed crude-to-chemical complex will produce refinery derivatives and petrochemicals for domestic sale and exports. It will also help in meeting the company’s primary feedstock requirement of Naphtha as well as Paraxylene, the company said in an application seeking clearance from the environment ministry.
The project is expected to be set-up in A V Nagaram village, East Godavari district, Andhra Pradesh. The complex is likely to be commissioned in 60 months from zero date. It will employ 5,000 personnel during the construction phase and its peak manpower requirement would be in the range of 20,000 to 30,000 personnel.
The refinery will be integrated with a downstream petrochemical complex with a 12 MTPA petroleum refinery and 1.6 MTPA of Ethylene equivalent petrochemical complex. “The proposed project has been conceptualized considering the integration with demand of PX and Naphtha within the group company and demand supply scenario of the downstream products,” HPL said.
The product focus of the refinery will be production of petrochemical feedstock, different from a conventional refinery where main products produced are fuel-based. The company is looking at producing High-Density Polyethylene (HDPE), Mono-ethylene Glycol (MGE) and Poly Vinyl Chloride (PVC) among other petrochemical products.
“The main product of the proposed refinery will be LPG, Naphtha, Paraxylene etc catering to the feedstock requirement of the petrochemical units and fuel generation from the refinery will be limited to the extent it can be sold in domestic market. However, depending on the volume, some amount of diesel may have to be exported considering low demand growth rate in domestic market,” HPL said.
HPL manufactures commodity polymers like HDPE, linear low-density polyethylene (LLDPE), and polypropylene (PP) and other chemicals like benzene, butadiene among other polymers and chemicals. The company serves packaging, consumer durables, houseware, automobiles, furniture, container, and luggage manufacturers.
HPL claims to be the third-largest player in the domestic polyolefins market after Reliance Industries and Indian Oil. India is a net importer of all petrochemical products, except Polypropylene. The demand for various petrochemical products is growing at a rate of 8-10 per cent with the bulk of the demand being met through imports.Share This