Eighteenth largest petroleum company IndianOil Corporation Ltd (IOCL, IndianOil, IOC) and Haryana State Industrial Development Corporation (HSIDC) signed a Memorandum of Understanding (MoU) at Chandigarh for the creation of a special purpose vehicle (SPV) for developing a petrochemical hub at Panipat.
The MoU was inked by Shri BM Bansal, Director (Planning & Business Development), IndianOil and Shri Rajeev Arora, Managing Director, HSIDC, in the presence of Shri Bhupinder Singh Hooda, Hon'ble Chief Minister, Haryana and Shri Sarthak Behuria, Chairman, IOC.
The proposed SPV will have equity from IndianOil, HSIDC and private developers and shall be entrusted with the responsibility of land acquisition, creation of the necessary infrastructure, etc.
The MoU marks a major milestone of cooperation and progress as envisaged in the MoU signed earlier on June 22, 2004 by IndianOil and the Government of Haryana for setting up a mega petrochemicals complex at Panipat.
The project shall be based on naphtha as feedstock and would comprise associated units and downstream polymer/ chemical units such as dedicated HDPE (High Density Polyethylene), Polypropylene and MEG (Mono Ethylene Glycol) at an estimated investment of Rs 11,000 crore.
Feasibility is also being studied for setting up for the downstream projects Polyethylene Terephthalate (PET) by utilizing a part of the PTA (Purified Terephtnalic Acid) to be generated as feedstock.
There is huge potential for downstream chemical and petrochemical projects based on the various refinery streams as feedstock. The feedstock available from IOC's petrochemical projects can nurture various downstream industries up such as Polyester Staple Fibre (PSF), Polyester Filament Yarn (PFY), Partially Oriented Yarn (POY) and Polyethylene Terephthatate (PET).
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