Hindustan Petroleum Corporation (HPCL)-led consortium has temporarily put on hold its proposed Rs300bn petrochemicals complex at Visakhapatnam, according to reports.
"The project has been put on hold because demand for petrochemicals has gone down," Arun Balakrishnan, Chairman and Managing Director, HPCL was quoted as saying.
This has been done for some time and "we will go ahead with the project once the situation (petrochemicals market) improves", he stated further.
The HPCL-led consortium includes GAIL, Oil India, Mittal Energy and French oil company Total.
Balakrishnan said, "We expect crude oil prices would hover around US$75-100/barrel in the next six months. HPCL's debt rose to Rs180bn from Rs120bn in April due to non-issue of oil bonds from the government."