The total investment proposed in the project will be up to Rs 7,500 crore. The project is proposed to be commissioned by 2003-2004.

Tidco chairman and managing director R Gopalan said owing to the heavy investment required for the project, the two partners will explore the possibility of another petrochemical major joining it.

He told The Fiancial Express that, "After identifying the third partner, the three together will decide on the actual investment by each".

Besides ethylene, the project will also produce 2.5 lakh tonnes of propylene and 1.65 lakh of mixed C4.

According to Tidco, using the above products from naphtha cracker, it is proposed to manufacture 3.5 lakh tonne gas-based polyethylene, 1.5 lakh tonne slurry-based polyethylene and 2.5 lakh tonne of polypropylene annually.

By-products like benzene and butadiene along with return naphtha stream will also be derived from this complex.

Tidco had obtained a letter of intent (LoI) in July 1996 for a naphtha cracker capacity of 3.5 lakh tonne ethylene. In 1998, the ethylene capacity in the LoI was enhanced to five lakh tonne a year.

In 1997-98 Tidco completed a techno-economic feasibility study through Chem System of the UK and Engineers India Ltd, New Delhi. This study established the financial viability of a large petrochemical complex in the state.

The naphtha for this cracker will be sourced either from Madras Refineries Ltd or from the refinery of Nagarjuna Oil Corporation Ltd.

The cracker is to be integrated with the refinery for utilisation of return streams. The project would come up either at Ennore, near here or in Cuddalore district.

It would employ directly about 1500 persons. In addition to plastics, which will be used for manufacturing end-products like ropes, extrusions, moulded products, pipes, BOPP and other plastic products, this complex will produce other petrochemical products. Setting up of processing facilities for the above would involve an investment of about Rs 3,000 crore and will provide employment to around 10,000 persons.