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Petrochemicals Segment to Significantly grow in post-covid consumption push
Feb 12, 2021 (Market Insight Reports) --

Post-Covid consumption spike is set to drive the growth for the petrochemicals segment and fuel the growth opportunity for the downstream players, informed Mukesh Kumar Surana, Chairman and Managing Director (CMD), Hindustan Petroleum Corporation Limited (HPCL) on Wednesday.

Surana also stated that overall consumption of petrochemicals will go up substantially and grow at the 1.5-times the GDP growth of the country.

"Due to pandemic, there is a general uptrend in the consumption of petrochemicals and derivatives of petrochemicals such as plastics. Driven by higher disposable income, rapid urbanisation, brand consciousness accompanied by targeted increase in consumption in automobile and housing sector will drive growth in petrochemical segment," Surana said during a global virtual meeting between Rajasthan Government and top global downstream players on the investment potential in the upcoming Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Barmer, Rajasthan. The meeting was jointly organised by Rajasthan State Industrial Development and Investment Corporation Limited (RIICO) and Confederation of Indian Industries(CII).

Projected investment at PCPIR is â?¹15,000 crore and 1.5 lakh jobs by 2030. Of this, nearly â?¹6,000 crore will come in the PVC products, while â?¹2,500 crore to come in toluene downstream sector, â?¹2,000 crore in butadiene downstream and about â?¹1,000 crore in PE and PP convertors. About â?¹3,000 crore is expected to come in ancillary and other industries, an industries department presentation showed.

Surana also stated that the Rajasthan PCPIR project, close to the â?¹43,000-crore refinery will be a big boost for the downstream industries to source key petrochemical derivative products including Polypropylene, LLDPE, HDPE, Butadiene, Benzene, Toluene, lubes among others. The refinery will produce about 2MTPA of polymers, while about 0.5 MTPA of liquid petrochemicals. The products will be available for downstream sector at single location, he added. The PCPIR is situated about 9-13 kms from the refinery. The first phase includes 93 industrial plots spread across 243 hectares.

Rajasthan’s minister for industries, Parsadi Lal Meena made the pitch to attract investments in the PCPIR, which is being set up close to the 9-Million tonnes per Annum (MTPA) refinery cum Petrochemical Complex by HPCL Rajasthan Refinery Ltd (HRRL) at Pachpadra in Barmer district. HRRL is a 74:26 JV between HPCL and the Rajasthan government.

"The State government is committed to ensure smooth execution of projects proposed by the industry. The required land will be provided under discount and through a faster channel under one-stop-shop model. We will continue dialogue with the industry to get a feedback and resolve any requirements they may have,” said Meena.

Giving an update on the progress of refinery project and PCPIR, Ashutosh Pednekar, Secretary, Industries Department, Rajasathan Government informed that due to COVID-19 disruptions, the refinery, which was to be completed by end of 2022, will now start production by end of 2023.

“This gives us a window of 18 months to plan and engage with investors to strategize the investments in the PCPIR,” said Pednekar. The PCPIR is being developed by Rajasthan State Industrial Development and Investment Corporation Limited (RIICO).

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