Panipat Petrochemical hub to boost polymer industry
New Delhi   24-Dec-2008
The upcoming petrochemical hub in Panipat is set to drive the growth of the petrochemical industry in north India. The 5,000 acre project, to be jointly set up by Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) and IndianOil, will give a thrust to the downstream industries especially polymer based in the northern states. Since IndianOil has expanded the capacity of its Panipat refinery from 6 MMTPA to 12 MMTPA, its Para-xylene/ Purified Terephthatic Acid (PX/PTA) unit commissioned and Naptha Cracker unit under construction, the petrochemical hub will help utilize the feedstock from the refinery. The process of acquisition of 1,000 acre for the first phase of the project is underway and as per official sources in HSIIDC about 200 acre of land has been acquired so far. HSIIDC is also scouting for a private partner to develop the petrochemical hub and working out the modalities to decide about the ownership model. A senior official of HSIIDC told FE, "We are in the process of sorting out issues like ownership rights, development model to adopt and procedure to follow. It is expected that the Expressions of Interest will be floated by February next year to find the private developer. After that the infrastructure development will take place." The new complex will create a dedicated industrial zone for the downstream industries and is likely to attract an investment of more than Rs15, 000 crore. “Besides providing employment to about 20,000 persons directly, it will also generate indirect employment opportunities through ancillary units. In the first phase we will be spending close to Rs 500 crore on infrastructure development,” said the official. Haryana government had signed the MoU with IndianOil for setting up this petrochemical hub on June 22, 2004 and extended special package of incentives to IndianOil and the future investors. Interest free loan will be available to the units and they will be exempted from local area development tax. Payment of electricity duty will also be exempted for five years. As per available information, IndianOil will make a total investment of about Rs 17,000 crore including about Rs 8,000 crore for the Naphtha Cracker and Polymer Complex. “IndianOil will further help the state identify the petrochemical industry related projects that can be set up in the hub which is likely to pave the way for opening up of ventures like high quality plastic industry, polyester fibre etc being started in the region,” the official further added. As per estimates, the petrochemical hub will eventually entail total investment between Rs 25,000-30,000 crore once fully commissioned.