IndianOil to build the 600,000tpa facility is to start in 2007

The IndianOil group is moving into polyolefins manufacture with a 600,000tpa polypropylene plant using Spheripol technology licensed from Basell.

The $30bn (E22bn)-turnover company will build the plant at Panipat, in the north-west of the country, with start-up scheduled for 2007.

The company sees the investment as the foundation for a wider position in petrochemicals in the future, according to Mr Govindarajan, general manager of its Petrochemicals business.

The agreement with Indian Oil is Basell’s 12th licensing deal this year, representing total manufacturing capacity of 3.6 million tpa. Up to now, most of India’s progress in petrochemicals and plastics has been through Reliance Industries.