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GAIL India to set up 1500 KTA ethane cracker project in MP

GAIL (India) Limited has announced its intention to set up a 1500 KTA (kilotons per annum) ethane cracker project at Ashta in the Sehore district of Madhya Pradesh. According to a press release, this project is expected to boost the production of various ethylene derivatives and marks a significant expansion of GAIL’s business.

According to a disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), GAIL has already made a formal request to the Government of Madhya Pradesh for the provision of necessary enablers to facilitate the project.

As part of the preliminary arrangements, the Madhya Pradesh Industrial Development Corporation Limited (MPIDC) has initiated the process of allotting approximately 800 acres of land for the project. The proposed ethane cracker is expected to increase GAIL’s production capacity of various ethylene derivatives.

Ethylene is a key feedstock for the petrochemical industry and is used in the manufacture of a wide range of products including plastics, resins and synthetic fibers. The new facility will contribute significantly to the industrial growth and economic development of the region. GAIL’s new ethane cracker project does not involve any modification or expansion of existing facilities as it is a completely new venture. This means that there is no current capacity to take into account or build upon and therefore the notion of existing capacity is not applicable in this context.

The timeline for adding this new capacity is undetermined at this time. The progress of the project is subject to several factors, including approval by GAIL’s Board of Directors. This approval is subject to the company securing favorable terms and the necessary support from the state government.

The process involves extensive planning and coordination with various stakeholders to ensure a smooth execution. The investment required for this project is expected to be around Rs 60,000 crore,

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