Chemical companies from the South have urged the Centre to facilitate the establishment of a naphtha cracker plant in Tamil Nadu to support investments in downstream industries.

A Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) proposed in the southern part of Tamil Nadu has remained on the drawing board, with a proposed oil refinery, the anchor industry for the PCPIR, being delayed.

At a meeting on Thursday with Minister of State for Chemicals and Fertilisers Mansukh Mandaviya, representatives of the Indian Chemical Council - Southern Region urged the Centre to consider the cracker unit with the support of public-sector oil companies and private-sector partnership.

TN PCPIR

TN PCPIR was to have been developed along the lines of those coming up in Andhra Pradesh, Gujarat, West Bengal and Odisha.

It was proposed in Cuddalore and Nagapattinam districts along the coast covering 256 sq km with Nagarjuna Oil Corporation, which is setting up an oil refinery, identified as an anchor tenant. However, the refinery project has been delayed due to financial constraints.

The chemical industry representatives said that a naphtha cracker plant could be considered in the near term as an alternative, with the support of public-sector oil companies. This could even be backward integrated with a refinery, when needed. Natural gas would also be available with an LNG import terminal coming up near Chennai, with pipelines extending along the east coast to southern parts of the State. The gas can be feedstock and fuel. Both together can support downstream industries.

Large companies in the Council are considering coming together to carry out a feasible study, said a participant.

They have also represented that the stringent restrictions on methanol handling and usage in Tamil Nadu is hampering the development of industries dependent on this input. They urged the Centre to take up the issue with the State government.

Related Topics