BPCL board approves to discontinue Polyols project at Kochi Refinery

2 Feb 2022 , 01:16 PM

Bharat Petroleum Corporation Limited (BPCL) Board at its meeting held on January 31, 2022, has approved a proposal for evaluating the option of putting up a Polypropylene unit at Kochi Refinery and to discontinue the Polyols project, the company said in a filing on Tuesday.

The company said that the Polyols project at Kochi Refinery was approved by the Board in September 2018. The project was developed further by carrying out activities such as an award for licensing of technology and related activities to licensors and appointing a Project Management Consultant.

During the development of the project, cost estimates with an accuracy level of +/- 10% were prepared based on Front End Engineering Design of the facilities. However, the revised cost estimates are much higher than the original estimate mainly on account of increase in equipment and material cost.

As this has adversely affected the project economics, the Board as stated above has approved the proposal to discontinue the said Polyols project, company said. 

At around 1.20 pm, Bharat Petroleum Corporation Ltd was trading at Rs381.55 per share up by Rs2.45 or 0.65% from its previous closing of Rs379.10 per share on the BSE.