Bharat Petroleum Corp Ltd (BPCL) said its board approved the proposal for setting up a polypropylene (PP) unit for the production of polypropylene at the Kochi refinery. The gross cost of the project is pegged at Rs 5,044 crore, the state-owned oil marketing company said in an exchange filing on December 19.
Polypropylene is used in downstream industries such as packaging films, sheets, boxes, containers, bags, homeware, home care, personal care and articles of day-to-day usage. The facility will have a production capacity of 400 kilo-tonnes per annum (KTPA), the company said.
BPCL cited robust growth due to expanding market demand of the petrochemical segment in India as the rationale for setting up the unit and flagged the availability of propylene feedstock at its Kochi refinery.
The project was mooted after BPCL scrapped its Rs 11,130 crore polyols project in February 2022 after the PSU oil refiner found that polypropylene was more feasible and promising, media reported in August.
Last month, GAIL India signed an agreement with Bharat Petroleum Corporation Limited (BPCL) for a 15-year supply of propane for its upcoming petrochemical plant in Maharashtra. The estimated value of the contract is over Rs 63,000 crore.
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