The Hindu : Business : IOC, West Bengal sign pact for chemical hub

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Thursday, Sep 28, 2006
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IOC, West Bengal sign pact for chemical hub

Special Correspondent

The oil major will assume the role of `anchor investor'

SAYING IT WITH FLOWERS: West Bengal Chief Minister, Buddhadeb Bhattacharjee (left), welcoming S. Behuria, Chairman of Indian Oil Corporation, during the signing of MoU between the state government and IOC on Wednesday. — Photo: PTI

KOLKATA: An agreement was signed here on Wednesday by the West Bengal Industrial Development Corporation Ltd ([WBIDC) and the Indian Oil Corporation (IOC) for the setting up of a chemical hub in the proposed Special Economic Zone (SEZ) in Haldia, where the latter will assume the role of the `anchor investor'.

Chief Minister Buddhadeb Bhattacharjee and the State's Industries Minister, Nirupam Sen, were present at the signing of the agreement.

IOC Chairman Sarthak Behuria later said a techno-economic feasibility study would be conducted by the corporation and the WBIDC for the setting up of a 15-million tonne `grassroots' refinery and various other integrated downstream units. The setting up of the grassroots refinery would involve an outlay of Rs. 1,500 crore. IOC would be conducting a study on various aspects of the chemical hub, he said.

"The IOC will finalise its role (as anchor investor) and look into the future possibilities of the chemical hub,'' Mr. Bhattacharjee said. The Indonesian conglomerate, Salim Group, would build the infrastructure for the chemical hub, he said.

The chemical hub is likely to have polyester, polymer, benzene and paraxylene downstream units, according to Mr. Behuria. It is expected to be completed by 2012.

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