26 March 2001 00:00 [Source: ACN]
Madhya Pradesh State Industrial Development Corp's (MPSIDC) petrochemical complex has been further held up by a delay in a refinery project proposed near the complex.
The 300 000 tonne/year cracker is expected to start up at the same time as Bharat Petroleum Corp Ltd's (BPCL) joint-venture refinery, which will supply naphtha to the cracker.
Startup for the 6m tonne/year refinery has been put back to end-2004.
MPSIDC's cracker was first scheduled for startup at end-2000 but the project has been postponed several times because of difficulties in securing feedstock from the refinery.
The recent delay in the refinery commissioning was due to a reluctance by BPCL's partner Oman Oil to inject more funds into the joint-venture, Bharat Oman Refineries Ltd (BORL).
The company cited the long wait for environmental clearance and uncertain market conditions as reasons for not wishing to raise its existing 26% stake in BORL.
BPCL, therefore, last month decided to proceed with building the refinery using its own funds which could raise the company's existing 26% share in BORL.
It is unclear how much BPCL invested last month.
The remaining 48% of equity will be subscribed by institutional and retail investors.
BPCL is now in the process of selecting a contractor for the refinery project. The project's cost has been revised from Rs52.77bn (US$1.13bn) to Rs65.17bn.
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