BPCL to invest Rs 4,588 crore in petrochemicals push to boost margins

Bharat Petroleum (BPCL) on Wednesday said it will invest Rs 4,588 crore (US $741.44 million) to diversify into the petrochemicals business, a move that will help the state-run refiner boost margins by expanding beyond refining and retailing.

BPCL will produce niche petrochemical products, that are predominantly imported into the country, at its Kochi refinery using propylene that will be available once the ongoing refinery expansion is completed, the company said in a statement.

The state-run company plans to boost capacity at its Kochi refinery to 310,000 barrels per day (bpd) from the current 190,000 bpd by May 2016.

The project proposal will now be submitted for obtaining environmental clearance and the petrochemical unit is expected to come on stream during financial year 2018-2019, BPCL said.

(Reuters)