I had a feeling in my bones that Reliance was laying the groundwork for a major project announcement with its endlessly bullish forecasts about the Indian market (see my earlier blog ‘Is India about to crash?’).
And low and behold, last week we saw the Indian major firm up its long-rumoured plans for a new cracker and derivatives complex at Jamnagar. The cracker is due on stream in 2010-11, using off-gas and other refinery by-products from its new refinery as feedstock.
Commentators say feedstock costs will be low. The petrochemical giant is already said to be producing some of the most competitive propylene in Asia. If its growth projections prove too bullish, Reliance will need to focus very hard on costs.