Bharat Petroleum Corp has decided to buy outright the critical technology to make specialty chemicals and expects to conclude a deal over the next few months, after its efforts to get a technology partner for Rs 5,000-crore petchem project in Kochi did not materialise.
With the upcoming plant located adjacent to its Kochi refinery, the third largest oil marketer plans to end India's dependence on imports for speciality propylene derivatives- based products such as acrylic acid and acrylates used in plastics, paints, coatings, adhesives, inks and textiles.
The facility, once completed, will produce 250 million tonne of speciality propylene derivatives products.
"Since our plan to get the Korean major LG Chem on board as a technology partner for the petrochemicals project did not materialise, we have decided to purchase the technology for speciality propylene derivatives outright. We are hopeful of concluding a deal within the next 2-3 months," BPCL Chairman and Managing Director S Varadarajan said here late last night after the PSU's annual general meeting.
He said that earlier this technology was not available for outright buy but now the situation has changed with players ready to sell protected or patented technologies.
A year after signing an agreement with BPCL in July 2012, LG Chem walked out of the JV in August 2013 citing adverse international environment for large investments.
BPCL Refinery Director B K Datta said there are only five companies in the world which have the technology to make speciality propylene derivatives. No Indian refinery has the know-how to make speciality propylene derivatives, which are currently imported.
Though Datta did not name any company which it is in talks with, it has been learnt BPCL is talking to Japanese and Chinese firms for the technology to make the niche products.
The petchem project is part of the Rs 16,500-crore expansion the company is undertaking to upgrade and increase capacity at the refinery from 9.5 million tonne to 15.5 million tonne by December 2015.
On status of the expansion, Varadarajan said the PSU has already invested Rs 3,000 crore and expressed hope the company will be able to complete the project on time.
The Kochi refinery currently produces petrochemical feed stocks such as benzene, toluene and propylene. Post-expansion and technology upgrade, the refinery will be able to process Euro V grade petrol and diesel, Datta told PTI.
BPCL currently has four refineries - in Mumbai, Kochi Bina (Madhya Pradesh) and Numaligarh (Assam).
