BP & Indian Oil scrap acetic acid project in Gujarat.

UK-based BP and Indian Oil Corporation's (IOC) joint effort to set up a 1-million-tonne-per-annum acetic acid plant in Gujarat has hit the wall.

The companies have now decided to scrap the project, as feasibility studies suggest that the plant is economically unviable.

IOC director (planning & business development) AMK Sinha said the company board couldn't approve the project, as it did not meet the minimum return on investments norms. 'There are certain issues on the capital cost. It appears that the project is not meeting the requisite norms,' Sinha told FE.

THE FINANCIAL EXPRESS