Bharat Petroleum Corporation (BPCL) has joined hands with Chennai-based Manali Petrochemicals for its petrochemicals project in Kochi, Kerala.
Both the partners will hold a 50 per cent stake each, in the new JV and finalise the structure by mid-January or before January-end. A pre-feasibility report is being prepared. The JV partners are also considering diluting around five per cent stake to the technology provider, and a similar percentage stake to a trading company.
In September 2013, LG Chemicals, former partner of BPCL for the project, had shelved the JV with the company on grounds of a global economic situation. After that, BPCL had initiated talks with Manali Petrochemicals to set up the project.
BPCL and Manali Petrochemicals will set up a Rs 3,000 crore polyurethane project next to BPCL's existing facility at Kochi. The capacity of the project will be increased to 3,50,000 tonne. Originally, it was envisaged to set up a 2,50,000-3,00,000 tonne capacity with an investment of Rs 2,500-Rs 3,000 crore. The unit, spread over 150 acre, is scheduled to be completed by January 2017.
Currently, BPCL is scouting around for global players to provide technology for the plant.
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