11 July 2006 11:30 [Source: ICIS news]
NEW DELHI (ICIS news)--Chennai Petroleum, a subsidiary of state-owned Indian Oil Corp (IOC), has shelved plans for a proposed polypropylene (PP) unit in Tamil Nadu, an IOC official said on Tuesday.
However, the company was pursuing a proposal to expand its propylene capacity at Chennai to 110,000 tonnes/year from 30,000 tonnes/year. It also plans to increase its refining capacity to 11.2m tonnes/year from 9.5m tonnes/year.
The company had concluded that the 150,000 tonnes/year PP unit, which would have cost Rs11.56bn ($250.15m/Euro196.41m), was not viable due to competition from imports, said the official. The minimum viable capacity was 300,000 tonnes/year, he added.
The unit was to have used propylene from IOC’s Haldia refinery at ?xml:namespace>
IOC has planned several PP units at the site, and these would get propylene feedstock from the refinery and the naphtha cracker.
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