Panipat naphtha cracker inaugurated
New Delhi   16-Feb-2011

Petroleum and natural gas minister S Jaipal Reddy on Tuesday dedicated to the nation the Rs 14,000-crore naphtha cracker plant at Panipat.

Reddy said that with the inauguration of the plant, Indian Oil has crossed one more milestone. This will be Haryana’s biggest industrial complex, which would produce feed for downstream polymer units.

Referring to oil production the minister said that India is importing 80% of its petroleum. Efforts are being made to expand the refineries, but he said that people should use oil as little as possible. “We should discover more sources for increasing the oil production,” he said.

Haryana chief minister Bhupinder Singh Hooda, who presided over the function, said that the plant was completed in a record time of 46 months with investment of over Rs. 14,000-crore.

For this, the state government contributed about 2,700 acres land and provided fiscal incentives. For downstream industries, an industrial estate is being developed for which 900 acres land has been acquired. A national-level Central Institute of Plastics Engineering and Technology is being set up at Murthal to meet the skill requirements of the industry.

Hooda appreciated that IOC had agreed to implement the resettlement and rehabilitation policy of the state government for latest acquisitions. The CM urged the IOC to spearhead its corporate social responsibility (CSR) agenda, especially for the land oustees and provide employment to at least one dependent member from each family, whose land has been acquired for this complex.

Hooda said that issues regarding connectivity were being addressed by building new expressways and up-grading the existing ones and mass rapid transit systems. New power projects were being set up to enhance the present capacity to 9,000 mw and the centre has also agreed for setting up of a nuclear power plant in the state, he added.

Minister of state for petroleum and natural gas, RPN Singh said it is a matter of pride that public sector has completed this task of naphtha cracker plant, as against the belief that only private sector could accomplish such things. “This will not only benefit Haryana, but the nearby areas also by generating more employment for the youth,” he said.

Later addressing a press conference, Reddy said that government has no plan to increase petrol and diesel prices, even though international crude rates have gone up to $100 per barrel.

This means that state fuel retailers would end the fiscal with revenue loss of Rs. 80,000 crore on selling diesel, kerosene oil and LPG, below cost. The government could meet this loss by way of cash dole out.