New Delhi: Indian Oil Board has given formal approval for setting up India’s first mega-scale Maleic Anhydride Plant to manufacture value-added chemical products at its Panipat Refinery and Petroleum Complex (PRPC). The project with CAPEX of Rs 3,681 crore will be commissioned in 54 months from stage 1 investment approval.
The project is proposed to have a capacity of 120 KTA (Kilo Tonnes per Annum) of Maleic Anhydride (MAH) that is used to make speciality products like polyester resins and surface coatings plasticizers, agrochemicals and lubricant additives. The plant will also manufacture 20 KTA of 1,4-Butanediol (BDO) that finds applications in Poly Urethanes (PU), Poly Butylene Terephthalates (PBT) - an engineering grade plastic and biodegradable fibres. Another value-added chemical, 16 KTA of Tetra Hydro Furan (THF), will also be produced from this plant to accelerate the growth of the pharmaceutical industry. THF is also widely used in adhesives and vinyl films.
Speaking on the newly approved Project, Indian Oil’s Chairman SM Vaidya said, “Presently, these high demand chemicals are mostly imported by India. The upcoming MAH Plant will reduce import dependence and save foreign exchange of about US$ 150 million per year, thus strengthening the mission of 'Aatmanirbhar Bharat.' Moreover, petrochemicals integration is the cornerstone of our future growth strategy, given the high potential of petrochemicals in India. This project will consolidate Indian Oil’s basket of niche products and increase the Lube and Petrochemical Integrity Index of Panipat Refinery to more than 15 percent after the refinery expansion plan is implemented.”
The ongoing expansion of the Panipat Refinery (envisaging capacity expansion of the refinery from 15 MMTPA to 25 MMTPA) and the implementation of petrochemical and other specialized units will make this Refinery one of the most advanced and integrated refinery and petrochemical complexes in Asia, with a complexity index of over 15.
The expansion blueprint includes units like Indmax for deriving maximum value from the petrochemical molecule, Polypropylene unit and a Lube complex for producing lube oil base stock apart from other refinery units. The existing Olefinic and Aromatic complex shall also be expanded along with the implementation of grass-root speciality petrochemical units like the Styrene unit and the just-approved Maleic Anhydride Unit.
(PSU Watch- India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)