HPCL, GAIL ink pact with AP govt for `40k-cr project

HINDUSTAN PETROLEUM Corp (HPCL) and GAIL India has signed an agreement with the Andhra Pradesh government for setting up a `40,000-crore petrochemical plant in the state.

“We have signed an MOU expressing intent for setting up the petrochemical plant,” BC Tripathi, CMD, GAIL, said at the two-day CII Partnership Summit in Visakhapatnam. The 50:50 joint venture will set up a 1.5million tonnes ethylene derivatives plant, which will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints and coatings, cosmetics, textiles and adhesives. The plant will be set up at the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR) sites identified by the state government at Kakinada.

Further, in another MOU, Aditya Birla group plans to invest `7,000 crore in the next two years in Andhra Pradesh on expanding existing businesses, said Kumar Mangalam Birla, chairman. The company already has investments worth `10,000 crore in the state across sectors like telecom, retail and cement.

“Our experience in Andhra Pradesh was fruitful... Until now, our investments are of the order worth about `10,000 crore. We have created jobs for 11,000 people, both direct and through ancillary industries,” said Birla .

“As we go along, we expect to invest another `7,000 crore in the next two years. This will be towards expansion of our existing businesses,” he added. The company has set up a cement plant with capacity of 5.6 million tonnes. “We are acquiring a fivemillion tonnes per annum capacity plant at an investment of `3,000 crore located near Amaravati city,” he said. FE