Haldia Petrochemicals Shutdown Paves Way for Other Petro Firms to Tap East

Kolkata: The shutdown of Haldia Petrochemicals Ltd (HPL) has paved the way for other giants in the sector to tap polymer market in the eastern region held by the region's petro major.

"We are unable to tap the eastern market though HPL plant is dry. Our plant is likely to commence operations next year. We are creating awareness about products in this part of the country," ONGC Petro Additions Ltd (OPaL) head polymer M Sanath Kumar said in Kolkata on Saturday.

According to industry estimates, HPL had a market share of 12 per cent in the polymer industry of the country with strong presence in the eastern region. The plant is closed since July.

Indian Oil senior manager Sumit Basu said the company was expanding its capacity in petrochemicals at Paradeep to tap the growing demand. Mr Basu was speaking at the Polycon India 2014.

GAIL GM (petrochemical marketing) Shivaji Basu said capacity of its plants is being expanded, including a green field petrochemicals project in the North East.

These new capacity in the East is expected to take off pressure from HPL and will help downstream industries to depend less on a Haldia-based plant.

Indian Plastics Federation had complained of raw material issues after the HPL shutdown for downstream industries of Bengal.

On Saturday IPF officials requested the petrochemicals majors that participated at the event to allocate more quantities for eastern region at least on spot price basis till the HPL plant reopened.