Tata Strategic Management Group expects India to emerge as a regional petrochemical production hub in next five to seven years, leading to increase in availability of base petrochemical products for downstream applications coupled with increased supply of organic chemical raw materials like olefins and aromatics at globally competitive costs.
Petrochemical capacity growth rate is expected to increase four folds to 12-15% pa over the next 5-7 years. Production is expected to increase from the existing US$15-18 billion to US$30-35 billion. Considering the asset intensive nature of the chemical industry, this would translate into investments of US$12-15 billion during this period.
The petrochemicals growth story is expected to be fuelled by the growth in refining sector. India's refining capacity is expected to increase by 60% from 135 million tons in 2006-07 to 210-225 million tpa in 2011-12. Apart from generating an exportable surplus of 78 to 93 mt of refined products, the growth in refining capacity would also increase the production of naphtha by 8-10 mln tons. This coupled with reduction in usage of naphtha by power and fertiliser sector would take the total availability in 2011-12 to approximately 10.5 to 12.5 mt.
Petrochemical capacity growth rate is expected to increase four folds to 12-15% pa over the next 5-7 years. Production is expected to increase from the existing US$15-18 billion to US$30-35 billion. Considering the asset intensive nature of the chemical industry, this would translate into investments of US$12-15 billion during this period.
The petrochemicals growth story is expected to be fuelled by the growth in refining sector. India's refining capacity is expected to increase by 60% from 135 million tons in 2006-07 to 210-225 million tpa in 2011-12. Apart from generating an exportable surplus of 78 to 93 mt of refined products, the growth in refining capacity would also increase the production of naphtha by 8-10 mln tons. This coupled with reduction in usage of naphtha by power and fertiliser sector would take the total availability in 2011-12 to approximately 10.5 to 12.5 mt.
