Ahmedabad: Indian Petrochemicals Corporation Ltd (IPCL) is planning to build the world's biggest MEG plant at Gandhar in Bharuch district of South Gujarat with a capacity of five lakh tonnes per year at an investment of Rs 1000 crores, Reliance Group Chairman Mukesh Ambani said today (June 12, 2004).

Addressing the 35th annual general meeting of IPCL in Vadodara, Ambani said the expansion projects at Vadodara petrochemical complex and PVC plant at Gandhar to 400,000 tonnes per year are progressing well and IPCL will be taking up expansion of existing MEG plant by 157 per cent to 1,88,000 tonnes per year.

"IPCL is also planning expansion of chlor-alkali plant by 25 per cent to 1,70,000 tonnes per year of caustic soda and capacity creeps in the EDC and VCM plants by 15 per cent," Ambani said, adding, all these projects will involve a capital expenditure of Rs 100 crores (US $ 23 million).

He said IPCL is evaluating various feedstock options to build a world-scale petrochemical complex.

On financial performance of IPCL, Ambani said that it had posted a 34 per cent increase in net profit to Rs 273 crores, 36 per cent increase in gross turnover to Rs 13,541 crores and 50 per cent increase in profit before tax and VRS expenditure to RS 480 crores.