Letter to Union Minister of Chemicals and Fertilizers

Dear Sri. Ananth Kumarji,

In view of the substantial expansion undertaken by M/s BPCL Kochi Refinery, the Government of Kerala intends to promote setting up of Petrochemical Industries in the region. With the expansion program of BPCL, various petrochemical base products like Propylene, Ethylene etc will be available in the location. BPCL is implementing a Petrochemical Complex to utilize the base products for value addition. The State Government intends to promote a Petrochemical Park in the region to promote production of final end products using the products of BPCL.

The BPCL Kochi Refinery and the Fertilizers and Chemicals Travancore Limited (FACT) Udyogamandal Division are situated in adjoining land at Kochi. FACT has about 450 acres of land remaining unutilised and it is worthwhile to explore the possibility of setting up the Petrochemical downstream projects in the available area. It is an added advantage that the area being adjacent, the raw materials required for the Petrochemical sector can be transferred through pipelines from BPCL Refinery. It is proposed to establish the said Petrochemical Park in 150 acres of land available in FACT. It is proposed to form a Special Purpose Vehicle (SPV) with FACT and KSIDC as shareholders, wherein the cost of land will be treated as the equity of FACT. KSIDC shall create basic infrastructure facilities like internal roads, power, water etc and the cost of land will be paid back to FACT, when lease premium on land is collected from the prospective entrepreneurs while allotting the land.

I would request you to consider formation of an SPV between FACT and KSIDC family and transfer an extent of 150 acres out of the unutilized land available with FACT to the SPV for setting up the Petrochemical Park as proposed above. I request an early positive response from the Ministry.

Yours sincerely,


Shri. Ananth Kumar
Minister of Chemicals & Fertilizers
Government of India
315-A, SB A-wing, 3rd floor,
Shastri Bhawan,
New Delhi-110001