Indian Oil Corporation Ltd. and the Haryana State Industrial Development Corporation (HSIDC) have signed a memorandum of understanding (MOU) at Chandigarh for the creation of a petrochemical hub at Panipat.

The project will use naphtha as feedstock and will comprise associated units and downstream polymer/chemical units such as dedicated HDPE (high density polyethylene), polypropylene and MEG (mono ethylene glycol). Further downstream projects such as poly-ethylene terephthalate (PET) are also being considered.

According to a statement released by the Indian Oil Corporation, the project at Panipat will help to create a ‘world-class petrochemical hub', which will cater to the requirements of the northern region of India as well as other regions.

As a result of the agreement, HSIDC is acquiring 5,000 acres of land to set up the hub. It will also include the development of a civic infrastructure such as schools, hospitals, parks, etc, as the plant will require a huge skilled and unskilled workforce ranging from 10,000 to 20,000 during the construction period, which may span more than a decade.