Prime Minister Narendra Modi will lay the foundation stone of the Downstream Petrochemical Complex and Refinery Expansion Project at Madhya Pradesh's Bina Refinery, owned by a state-run oil marketing company, on Thursday. To be completed in five years, the project is expected to create more than 1 lakh jobs and save foreign exchange worth Rs 20,000 crore annually, the Ministry of Petroleum and Natural Gas announced on Tuesday.
The project forms part of a substantial Rs 49,000 crore expansion plan that has been outlined for the sprawling plant. This will increase its capacity to 11 million metric tonnes per annum (MMTPA). The expansion is set to result in the production of more than 2,200 kilotons of petrochemical products. The Ethylene Cracker Complex will use captive feedstock such as naphtha, liquefied petroleum gas (LPG), and kerosene from the Bina Refinery.
"This petrochemical complex will pave the way for various downstream business manufacturing units in fields such as plastics, pipes, packaging material, plastic sheets, automobile parts, medical equipment, moulded furniture and other items for domestic and industrial use," the Ministry stated.
In addition to polymers, the plant will produce aromatics like benzene, toluene, and mixed xylene, which find significant applications in the creation of a wide range of products including lamination films, bubble and stretch wraps, shipping sacks, housewares, drip irrigation tubing, toys, water tanks, crates, and industrial containers.
The facility will also manufacture petrochemicals like styrene, phenol, and nitrobenzene, which have applications in the paint, pharmaceutical, and automotive sectors, according to the Ministry.
The Bina Refinery, inaugurated in May 2011, was the last new public-sector refinery. Initially boasting a 6 MMTPA capacity at the site, the state-run oil marketing company later expanded it to 7.8 MMTPA in 2018.
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In April, the state government gave its approval for the expansion and the establishment of a petrochemical project for manufacturing by-products like aviation turbine fuel, linear low-density polyethylene, bitumen, and benzene. The project has received state support in the form of goods and services tax (SGST) refunds, interest-free loans, interest subsidy assistance, power at concessionary rates, and stamp duty exemptions.
Located in the economically distressed Bundelkhand region, the project aims to realise the government's vision of establishing a Petroleum, Chemicals and Petrochemicals Investment Region in the state, expected to attract significant investments in injection moulding, blow moulding, pipes, conduits, and automobile parts.