New Delhi: Indian Oil Board has greenlighted the setting up of India's first mega-scale maleic anhydride plant, to manufacture value-added chemical products, at its Panipat Refinery and Petroleum Complex (PRPC).

The project with a CAPEX of Rs 3,681 crore will be commissioned in 54 months. from stage 1 investment approval.

The project is proposed to have a capacity of 120 KTA (kilo tonnes per annum) of maleic anhydride (MAH) that is used to make speciality products like polyester resins and surface coatings, plasticisers, agrochemicals, and lubricant additives. The plant will also manufacture 20 KTA of 1,4-butanediol (BDO) that finds applications in polyurethanes, polybutylene terephthalates (PBT) - an engineering grade plastic and biodegradable fibres.

Another value-added chemical, tetrahydro duran (THF), will also be produced from this plant to accelerate the growth of the pharmaceutical industry. THF is also widely used in adhesives and vinyl films.

On the newly approved project, Indian Oil Chairman S.M. Vaidya said: "Presently, these high demand chemicals are mostly imported by India. The upcoming MAH Plant will reduce import dependence and save foreign exchange of about $150 million per year, thus strengthening the mission of Aatmanirbhar Bharat. Moreover, petrochemicals integration is the cornerstone of our future growth strategy. given the high potential of petrochemicals in India.

"This project will consolidate IndianOil's basket of niche products and increase the Lube and Petrochemical Integrity Index of Panipat Refinery to more than 15 percent after the refinery. expansion plan implemented."