Bharat Petroleum Corporation Ltd (BPCL), India’s leading oil and gas company, Wednesday said it has received the approval of a polypropylene unit project at its Kochi refinery in Kerala.
The company said its board of directors at a meeting on December 19, 2023 approved the investment ₹5,044 crore in setting up a polypropylene production unit at its Kochi refinery to meet rising petrochemical demand in the country.
"...we wish to inform you that the Board at its meeting held on 19th December 2023 has approved a proposal for setting up a Polypropylene (PP) Unit, for production of Polypropylene at Kochi Refinery, at a gross project cost of ₹5,044 crore," Bharat Petroleum said in a regulatory filing.
The proposed polypropylene unit will be constructed in about 46 months from the date of the investment approval and is designed to produce 400,000 tonnes per annum, the company said in a statement.
BPCL Chairman and Managing Director G Krishnakumar said, "Our ₹5,044 crore investment in the Kochi Refinery's polypropylene unit is part of our strategic commitment towards a sustainable future. Addressing India's petrochemical demand, this project will reshape the industry, meeting the requirements for packaging films, containers and more."
The project will be funded in 65:35 debt-equity ratio, Bharat Petroleum said in a separate stock exchange filing.
The company said it is already operating a Propylene Derivative Petrochemical Plant (PDPP) at Kochi Refinery, producing critical import substitutes, such as acrylic acid, acrylates, oxo-alcohol, and other niche petrochemicals.
Polypropylene has wide applications in downstream industries such as packaging films, sheets, boxes, containers, bags, homeware, home care, personal care, and articles of day-to-day usage.
