Gandhinagar, Jun 7 (IANS): IndianOil and the Gujarat government on Monday signed a memorandum of understanding (MoU) worth Rs 24,000 crore for promotion of investment in the state.

The MoU involves the state-owned refiner setting up a Petrochemical and Lube Integration (LuPech) project and Acrylics/Oxo Alcohol project along with other infrastructure projects at its Gujarat Refinery at Vadodara.

The MoU was signed in the presence of Gujarat Chief Minister Vijay Rupani and Union Minister of Petroleum, Natural Gas and Steel Dharmendra Pradhan.

The LuPech project will produce import substitutes like Lube Oil Base Stock (LOBS) and Polypropylene. The Acrylics/Oxo Alcohol project at Dumad and Gujarat refinery will manufacture value-added Butyl Acrylate, a key ingredient for paints, coatings, adhesives, textile chemicals, plasticizer industry, and other similar products.

These projects will strengthen IndianOil's readiness for venturing into petrochemical projects like PVC, Styrene, Acrylonitrile, Poly-Methyl Methacrylate and Ethylene Oxide in future. The Petrochemicals and Specialty products (Gr-II/III LOBS) integration index based on additional crude oil added under this project is estimated to be 20.7 per cent.

Another MoU was signed for infrastructure facilities at Dumad for the Koyali-Ahmednagar-Solapur Pipeline (KAhSPL) and Tank Truck Loading facility for Linear Alkyl Benzene (LAB) -- a feedstock for detergent industries.

The other infrastructure projects envisaged are New Flare System at Gujarat Refinery and a Hydrogen dispensing facility for Fuel Cell Electric Vehicles (FCEV).

IndianOil's Gujarat Refinery will be implementing India's first Hydrogen Dispensing facility as a clean fuel initiative. This facility aims to fuel hydrogen buses plying between Vadodara and Kevadia/Sabarmati Ashram.

During his address, Rupani mentioned that Gujarat is a leading state in the field of oil and petrochemicals. The Chief Minister said, "As a result of the transparent policies, acceleration of 'Ease of Doing Business' and a favourable environment for industries in Gujarat despite the Covid-19 pandemic has for the fourth year in a row maintained its numero uno position as the highest recipient of Foreign Direct Investment (FDI) in the country."

Dharmendra Pradhan said, "Gujarat has become the first choice of investors as in its roots is Prime Minister Narendra Modi's vision that implements new plans for the holistic development of the State."

Giving further details during the MoU function, IndianOil Chairman S.M. Vaidya said, "Today Gujarat is charting a new path of prosperity. To power that journey, IndianOil's Gujarat Refinery is now poised to grow to 18 MMTPA capacity. New units for the production of Polypropylene, Butyl Acrylate and Lube Oil Base stocks will also be added to the Refinery's portfolio."

These projects will enable large-scale direct and indirect employment opportunities during the peak construction period and later for the operation of these facilities. During the construction stage, nearly 125 million person-hours of employment will be generated. The total investment outlook for these projects in different execution stages is nearly Rs 24,000 crore.