Indian Oil Corporation and Haryana
State Industrial Development Corporation on 14 April 2006 signed an MoU for the
creation of a special purpose vehicle for developing a petrochemical hub at
Panipat. The proposed SPV will have equity from IndianOil, HSIDC and private
developers and shall be entrusted with the responsibility of land acquisition,
creation of the necessary infrastructure, etc.
This MoU is a follow-on development to
the earlier MoU signed on 22 June 2004 between IOC and Haryana government for
setting up a mega petrochemicals complex at Panipat.
The project, estimated to cost
Rs.11,000 crore, will be based on naphtha as feedstock and would comprise
associated units and downstream polymer/chemical units such as dedicated HDPE,
polypropylene and nono ethylene glycol. Feasibility studies for extending
production to further downstream products like polyethylene terephthalate by
utilising a part of the PTA to be generated in the refinery as feedstock.
The naphtha Cracker along with polymer
units is expected to go on stream by 2009.
HSIDC is acquiring 5,000 acres of land
for setting up the petrochemical hub with all the basic amenities such as
internal roads, drains, sewerage system, street lights, electricity, effluent
treatment plants, fire station, commercial & housing facilities, including
development of civic infrastructure like schools, hospitals, parks, etc. HSIDC
has already initiated acquisition proceedings for 1,000 acres of land for the
first phase of the project. The remaining 4,000 acres shall be acquired during
the next two years in a phased manner.
According to IOC, the petrochemical
hub would require huge skilled and unskilled manpower ranging from 10,000 to
20,000 during the construction period, which may span over a decade or so. In
addition, the investment in downstream industries will also open up major
opportunities for development in infrastructure and peripheral facilities in the
state, leading to development of major vendors for supply and contracts. It is
estimated that infrastructure development worth around Rs.2,000 crore shall be
generated through this project. With an investment of around Rs.15,000 crore as
above in petrochemicals and end products, the downstream industries are likely
to generate an annual turnover of about Rs.12,500 crore.
Also See:
IOC commissions
diesel unit at Panipat refinery (24-Dec-05)