HYDERABAD: State-owned oil companyHindustan Petroleum CorporationBSE 1.01 %(HPCL) has teamed up with public sector gas company Gas Authority of India (Gail) to revive an ambitious 32,000-crore petrochemical project in Andhra Pradesh. The Petroleum, Chemicals andPetrochemicals Investment Region ( PCPIR) project in AP could not take off for over six years as both the anchor clients - HPCL and private infrastructure conglomerate GMRBSE 0.46 % Group - were plagued by troubles.
Both HPCL and GMR were to set up a 15-million-tonne-per-annum refinery project each in Visakhapatnam and Kakinada, respectively. In addition to the refinery, HPCL proposed a petrochemicals complex. While HPCL was looking for a consortium partner to take the project forward, GMR was held back by unfavourable macro-economic conditions.
"HPCL has informed us that they are teaming up with GailBSE 1.67 % to revive the project and that they would now be looking for a foreign petrochemicals partner for crude supplies," said Jayesh Ranjan, MD of Andhra Pradesh Industrial Infrastructure Corporation. "HPCL has sought a month's time to submit its revised project proposal with finer details," he told ET.
Officials of both HPCL and Gail confirmed the development but refused to provide further details. "It is still at a preliminary stage and details are being worked out," said a senior Gail official who did not wish to be named.
