Petrochem hub at Panipat to boost polymer-based industry
Chandigarh   27-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 and Infrastructure Development Corporation (HSIIDC) and IndianOil will give a thrust to the downstream industries, especially polymer-based units in the northern states. With IndianOil expanding 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 utilise the feedstock from the refinery. The process of acquisition of 1,000 acres for the first phase of the project is underway and as per official sources in HSIIDC, about 200 acres 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 ENS. "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 (EOI) 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 Rs 15,000 crore. "Besides pro-, viding 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 dose to Rs 500 crore on infrastructure development," said an official. It is pertinent to note that the Haryana government had signed a MoU with IndianOil for setting up this petrochemical hub on June 22, 2004, and extended special package of incentives to IndianOil and 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 government 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 added. As per estimates, the petrochemical hub will eventually entail total investment between Rs 25,000 and Rs 30,000 crore once fully commissioned.