MOSCOW (MRC) -- State-owned refinery Hindustan Petroleum Corporation Ltd (HPCL) and gas utility GAIL (India) Ltd are looking for viability gap funding of 2,000 crore to set up a petrochemical plant at a cost of 32,000 crore at Kakinada, according to Plastemart.
Both the companies in the joint venture are in talks with the state government on various aspects of the proposed 1 mln ton ethylene derivatives plant.
The authorities said the government cannot provide such huge funds and instead they can benefit from the State Goods and Service Tax (SGST) to the tune of about Rs 300 crore.
In the joint venture between the companies and the state government, the latter will facilitate permissions. Both companies will get land from GMR company in the Kakinada special economic zone (SEZ).
As MRC wrote before, HPCL and its partner Lakshmi N Mittal will invest about USD3 bln in setting up a petrochemical complex at the Bhatinda refinery in Punjab. HPCL-Mittal Energy Ltd (HMEL), a joint venture between HPCL and Mittal Energy Investments Pvt Ltd, Singapore, plans to set up an up to 1.2 mln ton naphtha cracker, expandable to 1.7 mt.
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters at Mumbai, Maharashtra and with Navratna status. HPCL has about 25% marketing share in India among PSUs and a strong marketing infrastructure. The Government of India owns 51.11% shares in HPCL and others are distributed amongst financial institutes, public and other investors.
MRC