State-owned refiner Hindustan Petroleum Corp Ltd (HPCL) and gas utility GAIL India Ltd will divest up to 50 per cent stake in the Rs 30,000 crore petrochemical plant which is being set up in Andhra Pradesh. HPCL and GAIL are looking at setting up a 1 million 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.
“Currently, it is a 50:50 project but we are open to inducting a strategic partner,” HPCL Chairman and Managing Director Mukesh K Surana has said. The project at Kakinada in Andhra Pradesh, will cost Rs 30,000 crore. “We are willing to give up to 50 per cent stake in the project to the strategic partner,” he said. Some global petrochem companies have shown interest in the project but talks are at preliminary stage currently, he said without disclosing details. The planned project is a truncated version of the earlier proposed refinery-cum-petrochemicals complex in Andhra Pradesh. HPCL has for the timebeing shelved plans to build a new refinery and is only pursuing petrochemical project.