State run Bharat Petroleum Corporation Limited (BPCL) is on the lookout for other partners to form a joint venture company in the segment for the Rs 5,000 crore petrochemicals project in Kochi. The move comes after the South Korean major LG Chemicals backed out of project.

“We were in advanced stages of discussions with L G Chemicals. But due to the global economic situation, LG is not keen on this project anymore,” said R K Singh, chairman and managing director, BPCL was quoted in the Business Standard. However, he added that there is no plan to shelve the project.

A senior BPCL official has confirmed that BPCL is in talks with Chennai based Manali Petrochemicals for to set up India’s single largest Polyurethane (PU) manufacturing plant in Kerala.

The project spread over 150 acres, would cater to automotives, white goods among others. Both companies would have a 50 per cent stake each in the new joint venture.  A pre-feasibility report is in the pipeline.
 

If the pact with Manali comes through, the propylene would be imported by BPCL, the conversion and market expertise comes from Manali Petro, which has got more than 25 years of experience now. The new indigenous plant is expected to go on stream by January 2017.

The plant is expected to provide revenues to the tune of about Rs 4,000 crore to the government in terms of taxes and would also help strengthen the highly fragmented PU industry in India by utilising its economies of scale besides providing employment to 900 people directly and seven times indirectly.