Hindustan Petroleum Corp Ltd (HPCL) and GAIL India Ltd have signed a pact with Andhra Government for setting up a Rs 40,000 crore petrochemical plant in the state.
The 50:50 joint venture will set up a 1.5 million tons 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.
“What we have signed is an MoU expressing intent for setting up the petrochemical plant,” said GAIL Chairman and Manging Director BC Tripathi.
The Andhra Pradesh government will support the project by providing infrastructure, power, roads and other clearances. The plant will be set up at the Petroleum, Chemical and Petrochemicals Investment Region (PCPIR) sites identified by the state government at Kakinada.