Kerala decides to fast-track BPCL PetroChem Park project

KOCHI: The Kerala government on Thursday held a high-level meeting of all stakeholders in Thiruvananthapuram to fast-track the process of setting up the Petrochemical Park project in Kochi following no concrete progress in its move to acquire 481.79 acres of FACT land at Ambalamedu nearly two months after the Central Government gave its nod.

The meeting, convened by K Ellangovan, Principal Secretary (Industries & Commerce), decided to authorise Kerala Industrial Infrastructure Development Corporation (Kinfra) to acquire the 481 acres through a ‘direct registration process’ or ‘negotiated purchase’ route. Out of the 481 acres, BPCL-Kochi will take 170-acre on lease for its polyols project. 

The Rs 11,300-crore project will produce polyols, which are used in the production of polyurethanes used in automotive seats, mattresses and shoe soles. The project is expected to take off by 2022. Formalities for the speedy land transfer to Kinfra was finalised and the government is expected to issue a notification in this regard, said a source.

The Central Government in July allowed the transfer of 150 acres of FACT land at the rate of Rs 1 crore per acre (the state government agreed to give freehold rights over 143.22 acres to FACT) and the remaining 331.79 acres at Rs 2.4758 crore per acre as assessed by the Ernakulam District Collector will be handed over.

The proceeds from the sale were aimed to help loss-making FACT to “address working capital deficiency, improve balance sheet and enable it to enhance physical and financial performance by implementing capacity expansion projects for sustainable growth”. Kinfra MD Santhosh Koshy Thomas, BPCL Executive Director Prasad K Panicker, K Biju, director of Industries & Commerce and officials from FACT and the government attended the meeting.