MoU signed for Kakinada Petrochemical Complex Project

An MoU has been signed between GAIL (India) Limited, Hindustan Petroleum Corporation Limited (HPCL) and the Andhra Pradesh government for setting up the Kakinada Petrochemical Complex Project. The 50:50 joint venture (JV) between GAIL and HPCL will set up a 1.5 million tonne per annum (mtpa) ethylene derivatives plant, which will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints and coatings, cosmetics, textiles and adhesives. The state government will support the project by providing infrastructure, power, roads and clearances. The plant will be set up at the petroleum, chemical and petrochemicals investment region site identified by the government at Kakinada. The GAIL-HPCL JV may divest half the project stake in favour of a strategic partner at a later date. Some global petrochemical companies have shown interest in the project but talks are at a preliminary stage. The detailed feasibility report for the project is being prepared and details will be worked out following that. The project is likely to cost Rs 400 billion.