Karol Bagh | IAS GS Foundation Course | 29 May, 6 PM Call Us
This just in:

State PCS

State PCS Current Affairs

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).

SMS Alerts
Share Page