Indian Economy News

L&T onshore vertical bags 'major' order from BPCL to build India's largest flexible petrochemical plant

The Hydrocarbon Onshore business division of Larsen & Toubro (L&T) Onshore has won a substantial Engineering, Procurement, Construction, and Commissioning contract from Bharat Petroleum Corporation Limited (BPCL), for the construction of what would emerge as the largest flexible petrochemical facility in India. It needs to be noted that this contract would fall under major projects, as classified by L&T, which generally range from Rs. 5,000 crore (US$ 600 million) to Rs. 10,000 crore (US$ 1.2 billion). The project comprises the construction of a Linear Low-Density Polyethylene (LLDPE) / High-Density Polyethylene (HDPE) Swing Unit consisting of two trains of 575 KTPA, which would be constructed on a Lump Sum Turnkey (LSTK) contract basis for BPCL's Bina unit, located in Madhya Pradesh.
Once operational, the plant is expected to provide a new benchmark within the country for the production capacity of polyethylene and is also an integral aspect of the Bina Petrochemicals and Refinery Expansion project of BPCL, which aims to develop an overall petrochemical complex and enhance the refinery's capacity. The project is also supportive of the Aatmanirbhar Bharat vision of the Government of India, aiming for an overall development of manufacturing within the country and curtailing the overall dependency on imported polymers. Both L&T and BPCL representatives have clarified that the award is an affirmation of their trust and faith in L&T's execution skills and overall delivery of services within the domain of onshore hydrocarbon projects. 

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