The state government has issued an order granting in-principle nod for Kerala Industrial Infrastructure Development Corporation (Kinfra) to set up a petrochemical park in Kochi.
“The next step is to procure 600 acres from FACT complex at Ambalamugal in Kochi for the project. The decision regarding this is pending for Union ccabinet approval,” said M Beena, managing director of Kinfra. The estimated project cost is Rs 1,864 crore, including the cost of land and internal infrastructure, which will be provided by Kerala Infrastructure Investment Fund Board (KIFB) in loan, Kinfra officials said.
Kochi already has a large refinery, fertiliser and chemical factories, a bulk terminal and International Container Transhipment Terminal (ICTT), besides the LNG Terminal & Gas Pipeline Network being established. The project assumes significance in view of the proposed expansion of BPCL, and proximity to port and natural gas infrastructure.
“The detailed project report (DPR) for the proposed petrochemical park will be sent to the state government for final approval,” said Kinfra official KN Srekumar. The corporation would also explore the possibility of getting central funding for the project, he added.
Infrastructure facilities required to be created include internal roads, drainages, water treatment plants, internal water supply system, internal electrification, common sewage treatment plants, common effluent treatment plants, rain water harvesting and solid waste management.
BPCL refinery is set for expansion of its refining capacity from 9.5 MMTPA to 15.5 MMTPA. With increased crude capacity of 15.5 MMTPA, the refinery will produce 5 lakh TPA propylene. This is in addition to production of various fuels like LPG, Kerosene, Coke and Bitumen. Utilizing 5 lakh TPA propylene, BPCL plans to establish a joint venture for production of various base materials that would boost manufacturing, augment exports and generate employment.
Petrochemicals currently contribute about 30% of India’s $120 billion-worth chemical industry, which is likely to grow at a compound annual growth rate (CAGR) of 11% over the next few years and touch $250 billion by 2020.
India stands a good chance, as petrochemicals market has shifted from the West to Middle-East and Asia. Future outlook for the industry is bright in various chemical sub sectors. While petroleum sector meets energy requirement, chemicals and petrochemical sector caters to various industries, including fertilizers, construction sector, pharmaceuticals, agriculture and textiles. Ryan Switzer Authentic JerseyShare This