Chemical sector PSUs like HPCL - Mittal Energy Limited (HMEL), Centre for High Technology and HIL (India) Limited are planning a cumulative investment of Rs. 37,600 crores for accelerating chemical manufacturing in India. 

 

The exclusive details were shared by these companies during Indian Chemical News' (ICN) PSU E-conference reveal investments worth approximately Rs. 37,600 crores towards establishment of new refineries, integrated refineries with petrochemicals and chemical manufacturing plants in various locations across India.

 

The Centre for High Technology (CHT), Ministry of Petroleum & Natural Gas is all set to invest approximately Rs. 14,400 crores under Pradhan Mantri JI-VAN Yojana to set up 12 2G bio-refineries and 10 demonstration plants in 3-4 years time; HPCL - Mittal Energy Limited is integrating refineries with petrochemicals at a project cost of Rs. 22,000 crores. Another major chemical fertilizer PSU, HIL (India) Limited is investing Rs. 1,200 crores into developing a new plant in the next two years.

 

Company - Project - Investment (in. Rs. Cr) 

CHT - Establishing 12 Bio-refineries - 14,400

HPCL - Integrating Refineries with Petrochemicals - 22,000

HIL (India) - JV with National Fertilizers Limited for Chemical Plant - 1,200

Source: Indian Chemical News 

 

Sharing CHT investment plans, K. K. Jain, Executive Director, CHT said, “Given the thrust on green energy, we are looking at setting up 12 Bio-refineries at the cost of Rs. 1,000 - 1,200 crores per Bio-refinery.”

 

Highlighting the import dependency, K. K. Jain commented, “India’s current crude oil import dependency is 89% and soon it will be more than 90%. Since figures are mind-boggling, serious efforts are needed to reduce the imports. An increase in gas production and a focus on biofuels and renewables provide an alternative. Besides, those refinery process improvements are necessary to cut down on the current 10% - 11% energy loss. Converting black oil into white oil also is a long-term option.”

 

Highly optimistic about the future, Prabh Das, MD & CEO, HPCL - Mittal Energy said, “India requires one Ethylene Cracker every year and is going to invest Rs. 8 lakh crores in the next 7-8 years. This is the investment we are looking for and the government is providing all the help and support to achieve it for years to come. I am sure this sector is going to prosper.”

 

"Integrating refineries with petrochemicals is one of the trends besides the growth of the polymer industry. Many EPC companies are looking at expansion. We are getting into refining from petrochemicals and the project investment to set up these plants will be around Rs. 22,000 crores,” added Das.

 

Emphasizing backward integration for making Indian PSUs self-reliance, Dr. S. P. Mohanty, CMD, HIL (India) Limited talked about taking care of the entire value chain to increase exports. 

 

Talking further about the company’s future plans, Dr. Mohanty said, “We are on the verge of signing a joint venture agreement with National Fertilizers Limited for a project that is expected to give us Rs. 2,000 crores turnover. Project investment is to the tune of Rs. 1,200 crores to be completed in 3 phases during the next 2 years.”

 

The chemical industry already contributes significantly to India’s trade volume. With market size expected to grow to $300 billion from the existing $165 billion by 2025, capturing emerging opportunities in the near term could make a positive difference to India’s chemical companies and to the overall industry.