Madhya Pradesh
Gail to Invest in Petrochemical Unit in Madhya Pradesh
- 23 May 2024
- 2 min read
Why in News?
According to the sources, state-run gas supplier Gail (India) plans to invest up to Rs 50,000 crore to establish a 1.5 million tonnes per annum (MTPA) ethane cracking unit at Sehore, Madhya Pradesh.
Key Points
- The new facility aims to meet the huge domestic demand for petrochemicals, which is projected to nearly triple to USD 1 trillion by 2040.
- Ethane, a natural gas component, is cracked into ethylene, a crucial input for producing plastics, adhesives, synthetic rubber, and other petrochemicals.
- Currently, Reliance Industries is the only Indian entity importing 1.5 MTPA of ethane for its crackers in Dahej, Hazira (Gujarat), and Nagothane (Maharashtra).
- Gail’s new ethane cracker will almost double its existing 810 thousand tonnes per annum (KTA) petrochemical facility at Pata near Kanpur, Uttar Pradesh.
- Global engineering consultant Engineers India Ltd is preparing the detailed feasibility report for the project, which is expected to be operational in the next 5-6 years.
- Initially, Gail considered setting up the new facility in Maharashtra’s Aurangabad or Dabhol, near its 5 MTPA liquefied natural gas plant, but later decided on Madhya Pradesh.
GAIL (India) Limited
- It is an Indian state-owned energy corporation with primary interests in the trade, transmission and production distribution of natural gas.
- It was founded as the Gas Authority of India Ltd. in August 1984 under the Ministry of Petroleum and Natural Gas to build, operate and maintain the HVJ Gas Pipeline.
- On 1 February 2013, the Indian government conferred GAIL with Maharatna status along with 11 other Public Sector Undertakings (PSUs).
