Essar plans polypropylene plant

The Essar group is planning to set up a polypropylene unit in Jamnagar.

While the exact size of the project and investment details are not known, a senior Essar official said they were in talks with two companies for a possible tie up for the plant, which is likely to come up in the group's special economic zone (SEZ) in Vadinar, an all-weather deep-draft natural port on India's west coast. More than 60 per cent of India's crude oil imports land in and around this region.

Even the prospects of a tie-up are yet to be worked out as the project was in its initial stages, he added. The company has already applied for necessary clearance for the proposed plant.

Currently, Reliance Industries Limited is Asia's largest manufacturer of polypropylene (PP). With a combined capacity of over 1 million tonnes, Reliance is one of the top eight polypropylene producers in the world.

The proposed plant would be near the Essar Oil Ltd's grassroots refinery in Gujarat, which was commissioned in 2006.

Essar's refinery in Gujarat is the second private refinery in India's state-dominated oil sector. Essar Oil's refinery has a capacity of 10.5 million tonnes per annum (mtpa).

"The refinery is configured to produce Euro II and Euro III grades of petrol and diesel. With mid-stream upgradation of processes and technologies, the refinery will have the capability to process the most sour, acidic and heavy crude oil," said company sources.