A project of Rs 5,044 crore in Kochi is approved by the BPCL board

20 Dec 2023 , 12:28 PM

The proposal to establish a polypropylene (PP) plant at the Kochi refinery for the manufacturing of polypropylene was authorised by the board of directors of Bharat Petroleum Corp Ltd (BPCL). According to a December 19 exchange filing by the state-owned oil marketing business, the project’s gross cost is estimated to be Rs 5,044 crore.

In downstream industries, polypropylene is used to make packaging films, sheets, boxes, containers, bags, household goods, personal care products, and everyday items.  According to the corporation, the facility will be able to produce 400 kilo-tonnes annually (KTPA).

As justification for establishing the plant, BPCL pointed to the strong growth brought about by the petrochemical segment’s growing market demand in India, as well as the availability of propylene feedstock at its Kochi refinery.

The project was considered after the PSU oil refiner, BPCL, abandoned its Rs 11,130 crore polyols project in February 2022, citing more feasibility and potential for polypropylene, according to media reports in August.

GAIL India and Bharat Petroleum Corporation Limited (BPCL) inked a deal last month for a 15-year propane supply for GAIL India’s planned petrochemical plant in Maharashtra. The contract is expected to be worth more than Rs 63,000 crore.

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