New DFPCL unit at Rs 204 cr

(Article First Published in The Financial Express, June 3, 2004)

MUMBAI, JUNE 2

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is setting up an isopropyl alcohol (IPA) plant with an investment of Rs 204 crore. The plant will have a capacity of 70,000 metric tonne per annnum of IPA and is scheduled for completion by last quarter of 2005.

Said DFPCL managing director SC Mehta: "The investment for the project will be made through both internal accruals and borrowings. At present, IPA is a 100 per cent import substitute product and there is a huge potential for this product which is used in industries like pharmaceuticals, agrochemicals, printings and imaging chemicals."

For the production of IPA, the company has already tied up with Bharat Petroleum Corporation Ltd for procuring raw material propylene for a period of seven years. DFPCL has also entered into a technological tie-up with Equistar-Lyndell through Kvaerner USA with exclusive licensing arrangement for seven years.

Taking advantage of opening of the power sector and LNG availability, the company has committed an investment of Rs 48 crore for captive cogeneration power plant consisting of two gas turbines and steam generators. The power plant is slated to be commissioned by September 2004.

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