The Cabinet of India has approved the state of Tamil Nadu's proposal to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in the districts of Nagapattinam and Cuddalore.
The first tenant of the PCPIR, Nagarjuna Oil Corporation (NOCL), is planning to construct a 6mmtpa refinery project at Cuddalore with an investment of Rs.96.6bn ($3.6bn).
The refinery is expected to come on stream by 2013, according to The Hindu.
NOCL, a joint venture of Tamil Nadu Industrial Development Corporation (TIDCO) and Nagarjuna Fertilisers and Chemicals (NFCL), plans to expand the refinery by 9mts to bring its crude processing capacity to 15mtpa by 2015-16.
In addition to the expansion plans, NOCL is also considering the construction a xylene production facility, a purified terephthalic acid (PTA) plant and a propylene recovery unit.
The development's second anchor tenant, Chennai Petroleum Corporation (CPCL), plans to establish a refinery-cum-petrochemical complex with 15mtpa capacity, which will have an ethylene cracker and downstream derivative units.
The CPCL project is expected to produce 1.2mmtpa of ethylene with a capital investment of Rs.400bn ($7.3bn) beyond 2015.
The Indian Government has already approved PCPIRs in the states of Andhra Pradesh, Gujarat, West Bengal and Orissa.