The ₹4,600-crore petrochemical project of BPCL Kochi Refinery has received a boost with environmental clearance accorded by the Centre.
The Propylene Derivatives Petrochemical Project (PDPP), proposed to be commissioned by mid-2018, envisages production of niche propylene derivatives such as acrylic acid, acrylates, and oxo alcohols that are predominantly being imported.
The technology for the process units is to be sourced from international licensors who have been identified, the company said in a statement.
PDPP is to be located in the vicinity of the BPCL Kochi Refinery for better integration of feedstock supply and other important requirements.
The land required for the project is already available with the Kerala Government sanctioning financial incentives such as deferment of KGST/ VAT and CST for 15 years as well as reimbursement of works contract tax for the project.
With the approval of this project, BPCL’s total investment in Kerala would be to the tune of ₹25,000 crore, which includes the Integrated Refinery Expansion Project (IREP) and the proposed LPG pipeline.
There is considerable scope for setting up downstream and ancillary industries considering the nature of products and their utilisation in common applications such as paints and coatings, printing inks, adhesives, water treatment, plasticisers, and solvents.