Petchem will be crucial growth area for Indian refiners
India is developing a master plan for the petrochemicals sector to serve as a road map for the next 15-20 years, revealed Rajeev Kapoor, Secretary, Dept. of Chemicals and Petrochemicals (DCPC).
He said this at the first Petrochemical Investors Conclave in Bhubaneswar on 16 Nov 2017, which was inaugurated Petroleum and Natural Gas Minister Dharmendra Pradhan.
India’s polymers demand is projected to grow from 13 million metric tonnes per annum (MMTPA) currently to 55-60 MMTPA by the year 2040, according to Tony Potter, Vice President (Asia Pacific), IHS Market.
Therefore, it is very important that the country’s investments in petrochemical plants keep pace with the rising demand to avoid imports in the coming years, he said.
Petrochemicals can be a major national economic driver, said Vipul Tuli, CEO, Sembcorp India.
Looking into the future, petrochemicals will not only be an attractive but a crucial and profitable growth area for Indian refiners, he added.
The Indian oil industry is already going in for Refinery-Petrochemicals integration on a big scale to capitalise on the huge opportunities available both in India and abroad, said Sanjiv Singh, Chairman, IndianOil.
This would lead to assured refinery product uptake, assured feedstock availability, major savings in investments in view of shared utilities, infrastructure and logistics, and resultant savings in operating costs.
Speaking at the conclave, Pradhan highlighted that India’s petrochemicals sector was going through a golden period, with growth rates of 14-15% per annum.
He told investors that Odisha state was the place to begin with the industry development as it is supported by availability of raw material from Paradip Refinery and other units from all over the country.
The eastern state also has skilled, low-cost manpower, port infrastructure & rail connectivity and a large regional market.
These opportunities must be fully utilise to create investment opportunities in the downstream industries such as Plastic Park and Textiles Park in the State.
While the per capita consumption of plastics in India is only 10 kg as compared to the world average of 32 kg, it is much lower at 5 kg in Eastern India, he said.
The Petrochemical Investors Conclave has been organised to create a new inspiration and a new eco-system for the growth of petrochemicals sector in the State of Odisha, he said.
This would also help generate wealth for a new generation of entrepreneurs, while at the same time creating employment opportunities for the youth of the State on a large scale, he said.
Meanwhile, the Indian Oil Corporation (IOC) and Industrial Development Corporation of Odisha have signed an MoU at the Conclave to collaborate in the setting up of a Plastics Park at Paradip.
IndianOil is setting up a 700 KTA (kilo tonnes per annum) Polypropylene unit at Paradip Refinery, to be commissioned in 2018, to serve as a mother plant for downstream polymer/plastics ancillary units.
IOC and Institute of Chemical Technology (ICT), Mumbai for signing on MoU to set up a campus of ICT in Bhubaneswar to be hosted by IOC.
IOC and MCPI Ltd will also be setting up a Textiles Park in Odisha.
With the coming up of an MEG (Mono Ethylene Glycol) Unit at Paradip Refinery and availability of PTA (Purified Terephthalic Acid) in the East, the polyester downstream industry can flourish very well in Eastern Region as well, said Pradhan, highlighting the MoUs.
By achieving synergy of cotton fibre with polyester fibre to promote and popularise synthetic textiles, the Textiles Park will primarily benefit Micro, Small & Medium Enterprises (MSMEs), with employment potential of around 22 lakhs.
The Conclave, themed “Purvodaya – The Dawn of New Investment Opportunities in Eastern India,” is to serve as an effective platform for young investors to interact with business leaders of the petrochemicals industry, Government functionaries, financial institutions, supply chain professionals as well as incubators in the academia at one place. fii-news.com
