Home / Knowledge / News / Textiles / India to prioritize naphtha as petrochemical feedstock
India to prioritize naphtha as petrochemical feedstock
14
Sep '12
Naphtha which is used as feedstock by various Indian industries like fertilizers, power, etc, would now receive priority for allocation to the vital petrochemical sector. 

In order to meet the growing demand for feedstock from the crucial petrochemical industry in India, the Indian government is contemplating a re-look at the allocation process for feedstock raw materials like naphtha which in turn is used to produce ethylene and propylene.

The Draft National Chemical Policy released by the government reveals that the government in consultation with industry is mulling a policy for allocation of feedstock to best-suited products, rather than based on priority sectors.

Accordingly, natural gas would be a priority for fertilizers, coal for power and naphtha for petrochemicals, rather than the current approach of treating a sector as the priority and all available feedstock distributed as priority to it.

Revealing details to fibre2fashion, a top source in the Indian Ministry of Chemicals and Fertilisers said, “The objective of the policy is to ensure value-addition of naphtha, which is being exported in large volumes currently. It would bring in more foreign exchange by adding value, rather than just exporting naphtha”.

He explained, “To ensure supply of critical stock for the petrochemical sector, the ministry has suggested adoption of a consortium naphtha cracker approach for developing capacities. Under this, each Petroleum, Chemical and Petrochemical Investment Region (PCPIR) would have a naphtha cracker, set up by anchor investors.

“Roughly a refinery of 15 million tons needs an investment in the region of Rs 250-300 billion with a built-in naphtha cracker. To put up plants to process the hydrocarbons would mean an additional investment of another Rs 100 billion which may not be financially feasible for the refinery management.

“Once a refinery is set up, roughly around 40-50 percent of products are hydrocarbons. The policy envisages setting up of a cluster of downstream units around the refinery which will consume the hydrocarbons produced by the refinery. These downstream units will be set up by individual investors and fed from streams of the refinery.

“This approach has been adopted in Germany, China, Belgium, etc. Private downstream companies would be encouraged to hold equity in the main plant, Private companies could enter into long-term contracts to ensure supply and the unit could have an independent economic viability”, he wound up by saying.

Naphtha is feedstock for a host of raw materials in the textile value chain like paraxylene, ethylene, propylene, benzene, etc. But at the same time, ethylene and propylene too, can be produced from natural gas which has sufficient ethane and propane.

Installed crude oil refining capacity in India is around 193 million tons per annum. Assuming that around 10 percent of the products derived, are naphtha, this translates in to 19 million tons of naphtha production per annum. Naphtha is exported in huge volumes of around 700,000-800,000 tons per month from India.

The policy aims to add value to the naphtha produced in the country in to other petrochemical products like ethylene, propylene, benzene, which if exported can realize more foreign exchange and value, rather than just exporting naphtha. 

Fibre2fashion News Desk - India


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

American Merchant to invest $19.9 mn to start Bristol plant

Textiles | On 15th Dec 2017

American Merchant to invest $19.9 mn to start Bristol plant

American Merchant, Inc., a subsidiary of Merchant House International ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search