Andhra Petro plans to take Rs. 3,200-mn expansion scheme

Hyderabad: Andhra Petrochemicals Ltd (APL) has signed a technology licence and engineering supply agreements with Davy Process Technology Ltd, London (Davy), for the expansion of its existing Oxo Alcohols Plant at Visakhapatnam.

The Rs 320-crore expansion will increase production capacity to a total of 73,000 tonnes per annum (tpa) from the current production level of 40,000 tpa. The plant is scheduled to go into operation by 2010.

The contract was signed at Hyderabad by Dr B. B. Ramaiah, Director, APL and Dr. David Tomlinson, President, Davy.

The project outlay of Rs 320 crores is to be partly financed by banks and partly from internal resources, said Dr V.N. Rao, Chief Executive, APL.

HPCL’s Visakha Refinery, the current supplier of propylene, a major raw material, has committed to meet the additional requirement according to a press release from APL.

APL chose the latest and modern LP Oxo SelectorSM 30 Technology, from Davy, the Technology suppliers for the existing plant due to cost efficiency.

The modernisation and optimisation employed in the expansion is slated to produce all the three products — 2-Ethyl Hexanol, Normal Butanol and Iso Butanol simultaneously, hitherto produced on a campaign basis.