BPCL to set up Rs.5044 crore polypropylene project at Kochi refinery

Kochi:Bhartat Petroleum Corporation (BPCL) is setting up a 400 KTA ( Kilo-Tonnes per Annum) polypropylene plant at at its Kochi Refinery at an estimated cost of Rs.5044 crore.

Highly placed sources told Myfinpoint.com that the board of directors that met on Tuesday (December 19) gave green singal to the project.

The souces said that the decision to set up the PP Unit stems from the recognition of robust growth opportunities in the petrochemical segment within India, driven by expanding market demand. The availability of Propylene feedstock further enhances the feasibility of this initiative for BPCL Kochi Refinery (KR). Polypropylene, with versatile applications in downstream industries such as Packaging Films, Sheet, Boxes, Containers, Bags, Home Ware, Home Care, Personal Care, and various day-to-day articles, aligns with the strategic vision for the company's diversification.

The funds allocated for this project will be deployed in a Debt-Equity ratio of 65:35, reflecting a balanced financial approach. This decision underscores BPCL's commitment to capitalizing on growth opportunities in the petrochemical sector and fortifies its position as a key player in India's energy and chemicals landscape. The establishment of the Polypropylene Unit is expected to contribute significantly to the company's overall growth and meet the rising demand in downstream industries, they said.