GAIL signs pact to revive petrochemical plant in Mangalore
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Government-owned gas giant GAIL (India) Limited has announced that its wholly-owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has re-engaged with process licensor INEOS to support the revival of its plant.
The renewed collaboration has been formalised through an amendment agreement signed here, GAIL said.
"This marks a significant step towards the revival of GMPL's 1.25 MMTPA Purified Terephthalic Acid (PTA) manufacturing plant located at the Special Economic Zone (SEZ) in Mangalore," according to a GAIL statement.
The collaboration marks a pivotal development in the efforts to bring the PTA plant back into production. The original agreement with INEOS was executed by JBF Petrochemicals (JBF), which could not be realized due to insolvency proceedings.
Following GAIL's acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is now working to overcome the legacy challenges and ensure the plant’s successful on-streaming and long-term operational stability.
Speaking on the occasion, Chairman, GMPL and GAIL Director (HR) Ayush Gupta said, "Through this strategic partnership and renewed focus, GAIL aims to position GMPL as a key player in the domestic PTA market while supporting the country’s growth in petrochemical manufacturing."
GAIL Director (Business Development) R. K. Singhal said, "The successful realisation of this project is expected to have a positive impact by reducing the country's import burden and strengthening India’s manufacturing capabilities in the petrochemical sector."
The amended agreement with INEOS signed on Wednesday is expected to enhance the plant's operational efficiency, align production capabilities with market demand, and contribute to India’s vision of self-reliance as part of the Centre's Atmanirbhar Bharat initiative, the company said.
INEOS Group is a global manufacturer of petrochemicals, speciality chemicals and oil products.
GAIL had registered a 10.2 per cent increase in net profit at Rs 2,693.5 crore during the July-Sept quarter of the current financial year, up from Rs 2,444.05 crore in the same period last year.
The company’s petrochemical segment returned to profitability during the quarter with an earning of Rs 146.19 crore.
