Indian Oil Board accorded approval for implementation of Rubber Project

New Delhi: Indian Oil Corporation Limited disclosed the information of the Poly-Butadiene Rubber (PBR) Project at IndianOil’s Naphtha Cracker Complex at Panipat, Haryana. The company's Board gave the approval in its meeting held on 16th March 2022 has accorded approval for implementation of the Project with an estimated investment of Rs.1459 crore. It is expected to be operational by 2025.

The plant will have a PBR production capacity of 60,000 tonnes per annum based on state-of-the-art technology provided by Goodyear Tire & Rubber Company which is also the leading global manufacturer of automotive tyres. Butadiene is the primary raw material for the production of PBR which shall be available from the existing Naphtha Cracker Complex of the Company. The Tyre industry is the largest consumer of PBR in India with more than 80%, while the balance is for other industries such as footwear, conveyor belts, etc. 

In view of the present deficit in PBR production in India and the steadily growing demand, the demand-supply deficit is expected to grow considerably in the future. The implementation of the Project would reduce the nation's import dependency for PBR, thereby, aiding to Atmanirbhar Bharat and Make in India vision for the nation. With the commissioning of this project, the Petrochemical Intensity Index of Panipat Refinery & Petrochemical Complex will increase from 15.9% to 18.05% along with other upcoming projects.