The state-controlled oil and gas company Bharat Petroleum (BPCL) has secured approval from the Indian Environment Ministry for a Rs46bn ($718m) expansion of its refinery in Kochi in the state of Kerala.
The expanded refinery will produce petrochemical products for which the country currently relies on imports, reported Press Trust of India.
The propylene derivatives petrochemical project (PDPP) will comprise three major process units, including acrylic acid, oxo-alcohol and acrylates.
BPCL said: "About 329 kilo-tones per annum (KTPA) of products will be manufactured from 250 KTPA of propylene feed stock in the PDPP complex.
"Matching utilities and off-site facilities are also envisaged as part of the project."
The PDPP complex will be built near the refinery, to benefit from the combined feedstock supply, utilities, offsites and other facilities.
"The project is expected to achieve mechanical completion in the first quarter of 2018.
"The refinery / petrochemical complex will become a pacesetter in safety, environmental compliance, reliability, energy efficiency and operating cost," the company added.