The Department of Chemicals & Petrochemicals approved Reliance Petroleum's application for a foreign technology collaboration agreement with Dow Global Technologies for its proposed 0.9 million tpa polypropylene plant in Gujarat. The 0.9 million tpa unit will come up at Meghpar village near Lalpur in the Jamnagar special economic zone in Gujarat.

The agreement will be valid for 10 years and Dow Global Technologies will be paid $26.55 million in four installments for the plant.

The company will receive the payment as follows:

• 25 per cent of the total payment after signing the license agreement
• 25 per cent upon delivery of the process design package
• Subsequent payments of 25 per cent each will be made after the completion of the operations, training and commissioning of the plant.

The technology offered by Dow Global Technologies is UNIPOL-PP using UNIPOL fluidised gas process. There is also an option of installing a catalyst plant along with solvent recovery unit with an initial capacity of 100 tpa and a provision of expanding the capacity up to 300 tpa by adding two more plants, each having a capacity of 100 tpa.

Also See:

Reliance Petro files draft prospectus (08-Mar-06)