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HSIDC, IOC sign MoU for petro hub

IOC and HSIDC have signed a MoU for setting up a petrochemical hub with an investment of Rs 25,000 cr in Panipat district.

india Updated: Apr 14, 2006 15:31 IST

Indian Oil Corporation (IOC) and Haryana State Industrial Development Corporation (HSIDC) have signed a Memorandum of Understanding for setting up a petrochemical hub with an investment of Rs 25,000 crore in Panipat district.

The two would jointly build a Special Purpose Vehicle (SPV) for the purpose and will have equity from IOC, HSIDC and private developers.

The petrochemical hub, to be set up at a cost of Rs 25,000 crore, would generate employment opportunities for 25,000 to 30,000 people, IOC CMD Sarthak Behuria said.

The plant would be built on a cost sharing basis between HSIDC, IOC and other ancillary units, he said.

The MoU was signed by IOC Director, Planning and Business development BM Bansal and HSIDC Managing Director Rajeev Arora in the presence of Behuria and Haryana Chief Minister Bhupinder Singh Hooda.

Arora said that the government would immediately start the process of acquiring about 1,000 acre of land and work on the project would commence after 2009.

The Naptha petrochemical hub would cater to the requirements of the northern region.

Behuria said a special cell has been created in IOC for speedy completion of the petrochemical hub, which would be comparable to the Zurang Hub in Singapore.

The total investment of the IOC in the project would be around Rs 20,000 crore, which would be the highest in any project.

Meanwhile, Behruia reiterated his demand for a hike in petroleum products as the oil giant was losing around Rs 2,000 crore a month on account of subsidies.

"We are on day to day basis holding discussions with the Government for hiking the prices of LPG, kerosene oil and other petroleum products," he told newspersons.

IOC was suffering a daily loss of Rs 30 crore and the corporation has sought fixation of the actual cost price as the market price for LPG and kerosene.

First Published: Apr 14, 2006 15:31 IST