State-owned Bharat Petroleum Corporation Ltd (BPCL) on Wednesday said it will invest Rs 5,044 crore in setting up a polypropylene production unit at its Kochi refinery in Kerala to meet rising petrochemical demand in the country.

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The 400,000 tonnes per annum polypropylene unit will be constructed in about 46 months from the date of the investment approval, the company said in a statement.

Polypropylene has wide applications in downstream industries such as packaging films, sheet, boxes, containers, bags, home ware, home care, personal care, and articles of day-to-day usage.

BPCL Chairman and Managing Director G Krishnakumar said, "Our Rs 5,044 crore investment in the Kochi Refinery's polypropylene unit is part of our strategic commitment towards a sustainable future. Addressing India's petrochemical demand, this project will reshape the industry, meeting the requirements for packaging films, containers and more."

This initiative builds upon BPCL's existing capabilities, with the operation of a Propylene Derivative Petrochemical Plant (PDPP) at the Kochi refinery.

The project will be funded in 65:35 debt-equity ratio, BPCL said in a separate stock exchange filing. The company's board of directors at a meeting on December 19 approved the PP unit.

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