HPCL, GAIL ink pact with AP govt for petrochemical project

Hindustan Petroleum Corporation Limited (HPCL) and Gas Authority of India Limited (GAIL) signed a pact with the Government of Andhra Pradesh (GoAP) for setting up Rs 40,000 crore petrochemical plant in the state. The decision came in the two-day Confederation of Indian Industry (CII) Investment Summit in Visakhapatnam. Both oil companies will be working together with GoAP for proposed greenfield standalone petrochemical complex in Andhra Pradesh.

The 50:50 joint venture will set up a 1.5 million tonnes ethylene derivative plant. The newly established plant will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints, coatings, cosmetics, textiles and adhesives. The plant is likely to be set up at the petroleum, chemical and petrochemicals investment region (PCPIR) sites identified by the state government at Kakinada.

The share price of HPCL declined 1.47 per cent and closed at Rs 535.5 on Friday's trading session. Meanwhile, the stock of GAIL increased 1.36 per cent and closed at Rs 482.25 on January 27. On Monday, these companies share prices will be watched out.