The Board of Directors of Tamilnadu Petroproducts Ltd (TPL) has approved three proposals – augmentation of capacity of Linear Alkyl Benzene (LAB) plant, modernization of HCD plant and setting up a Propylene Recovery Unit.

The capacity of Linear Alkyl Benzene plant would be increased from the existing 120 KTA of which about 90% is utilized at present to 145 KTA at an estimated cost of Rs. 240 crore. Post regulatory approvals, the project is expected to be completed in about 24 months.

The Caustic Soda unit of the HCD plant is proposed to be revamped at an estimated cost of Rs. 165 crore by replacing the mono-polar membrane technology with a more advanced world-class bipolar membrane technology. The per day capacity is expected to be increased from 150 TPD to 250 TPD and would be completed in about 18 months of statutory clearances. At present the average capacity utilization of the HCD plant is about 90%.

The setting up of Propylene Recovery Unit with an initial capacity of about 21 KTPA would be implemented at an estimated cost of about Rs. 30 crore and cater to the feedstock requirements of the PO Plant. The surplus production would be sold in the domestic or global market based on market conditions. The implementation period would be 12-18 months upon receipt of regulatory approvals.

The aforesaid projects are aimed to improve the share of TPL in the domestic market for LAB and Caustic Soda, demand for which is expected to grow by about 4% per annum in the coming years.

A significant portion of the funding requirements of above plans would be met from internal accruals and the remaining through borrowing. The ratio of borrowing would be decided based on the cash flow during the implementation period, which as indicated above is spread over 12 to 24 months post regulatory approvals.