HPCL-Mittal Energy Limited (HMEL) on Saturday said the ambitious 9-million tonnes Bathinda oil refinery would attract an investment of Rs.1,300 crore in polypropylene-based downstream industry in the State.
“We think that after the completion of the refinery, there will be an investment of Rs.1,300 crore in downstream industry in the State,” HMEL Chief Executive Officer Prabh Das told reporters here.
Bathinda refinery will be one of the few refineries in the country, which will have the capacity to produce 4.40 lakh tonnes of polypropylene, an official said while adding that currently polypropylene granules were produced in Gujarat and Maharashtra.
With Ludhiana, Bathinda, Banur and Lalru being seen as most attractive locations for setting up polypropylene-based industry, about 50 per cent of the total produce would be consumed by the State itself, he said.
Polypropylene granules were mainly used by the plastic industry such as woven sack and film units as main raw material in manufacturing of plastic items like buckets, mugs, toys, plastic furniture, wrapping films, woven sack bags for cement and foodgrains, he added.
Mr. Das said the Rs.18,919-crore oil refinery was expected to be commissioned by June next year. “An investment of Rs.13,700 crore has already been made in the oil refinery,” he said.
After commissioning, the refinery would produce high-value petroleum products such as LPG, naphtha, petrol, diesel, aviation fuel and pet coke. The liquid products would be marketed through HPCL, the solid products like sulphur, pet coke and polypropylene would be sold directly by HMEL.
As per the break-up, the capacity of major products like diesel will be 3.7 million tonne, followed by petrol 1 million tonne, LPG 0.7 million tonne and coke 0.9 million tonne in the upcoming refinery.
HMEL is a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and Mittal Energy Investment Pvt Ltd, Singapore, a Lakshmi N. Mittal Group Company. Both the joint venture partners hold a stake of 49 per cent each in the company, the balance 2 per cent is held by financial institutions.
Two MoUs were also signed on Saturday by the HMEL refinery with Punjab Spintex, and Northern Polyfilms for supply of polypropylene which will entail an investment of Rs.40 crore. “The using capacity of both these companies will be 6,000 tonnes of polypropylene,” Mr. Das said.
On being asked about the fiscal sops, Mr. Das said the company had always been seeking incentives from the State government. “The response of the State government has always been supportive (with regard to demand of fiscal sops),” he said.
HMEL has been seeking Rs.400 crore per annum as interest-free loan for the first 15 years from 2011-12 to 2025-26 which is to be paid back annually from the 16th year — 2026-27 onwards for the next 15 years.
Speaking on the occasion, Punjab Deputy Chief Minister Sukhbir Badal said that the State would receive an investment of Rs.82,000 crore from four upcoming power projects and Bathinda refinery. “Today we wanted to showcase our Bathinda refinery project which will bring economic development in the state,” he said.
