MIDC orders feasibility study for petrochem complex in Vid

Nagpur: Maharashtra Industries Development Corporation (MIDC) has mandated public sector undertaking, Engineers India Limited (EIL), to carry out a techno feasibility study for setting up a stand-alone petrochemical complex for making primarily bulk polymers in Vidarbha.
In a letter issued to the EIL, the MIDC has stated that it has accepted the former’s offer to carry out a study for having a petrochemical complex at the additional Butibori industrial estate. The EIL would be paid a fee of ₹2.49 crore for the job.

The move comes following a strong case put up by independent strategist Pradeep Maheshwari and NGO Vidarbha Economic Development (VED) council for having a petroleum refinery in Vidarbha region. In response, deputy chief minister Devendra Fadnavis had agreed to get a study done for having a petrochemical complex instead.
Based on the report, investors are expected to be attracted for setting up the project, said Maheshwari, and Devendra Parekh the president of VED. At present there is no plan by any of the players in the petroleum sector to have a complex here.
“Once the report is ready, we would go back to the DCM asking him to take up the case with any of the oil PSUs to make an investment in the region. The report has to be submitted by August end. The VED hopes that considering the election time during that period, and employment potential of the project, Prime Minister Narendra Modi would also back the idea,” Parekh said.
Maheshwari, who has been strongly advocating for a refinery in Vidarbha region, said that the complex would benefit the plastic industry. The study would consider options of having various feedstock like naphtha, ethane, ethylene or natural gas. Currently, Gas Authority India Limited (GAIL) is laying down a natural gas pipeline from Mumbai to Nagpur, said Maheshwari. However, he stressed that a refinery would result in larger industrialization.
The EIL has been asked to carry out a configuration study with various downstream units, and identify the best suited configuration based capital and operational expenditure. It is expected that six to eight options may have to be evaluated, out of which the best would be selected for further study. The configurations would include different options of downstream products as well as one with feed flexibility. The EIL study would also be estimating the finances for the project and preparing the implementation schedule, apart for preliminary selection of the pipeline route.