KOLKATA (ICIS)--Hindustan Organic Chemicals Limited (HOCL) will resume operation of its phenol plant, shut for the last two months, with $10m (€7.3m) grant offered by the Indian government, a company official said on Friday.
The plant located near Kochi in southern India was forced to stop production owing to financial crunch and inability to purchase raw material. However, after the financial support committed by the Indian government, HOCL will resume operations within the next one month, the official said.
The first priority will be to stabilise production of the 40,000 tonne/year plant and in the second phase increase capacity by another 16,000 tonne/year, the official said.
The expansion project for the phenol plant will be implemented in joint venture between oil refiner-marketer Hindustan Petroleum Corporation Limited (HPCL) and HOCL in which the latter will provide technology, land and manpower, while HPCL will take care of the funding, he added.
The details on the expansion plans will be finalized after the production from the existing plant stabilizes over three to six months, the official said.
The Indian government will also arrange the supply of raw material for phenol production on a three-month credit basis from HPCL, which operates a refinery at Kochi, he said.
HOCL had also made representation before the ministry of commerce for re-imposition of anti dumping duty on phenol imports into the country where annual consumption was pegged at 200,000 tonne/year, half of which was met through imports, the official said.
Earlier this year, ADD on phenol imports from South Africa, Singapore and European Union were allowed to lapse after expiry of the term of the levy.
According to HOCL official, the commerce ministry had assured the company that ADD on imports of phenol would be re-introduced through extension subject to a review to be conducted by the Directorate General of Anti Dumping and Allied Duties (DGAD).
($1 = €0.73)