The Business Bytes
New Delhi, November 28, 2024 (TBB Bureau): GAIL (India) Limited, through its wholly owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has taken a decisive step toward revitalizing its 1.25 MMTPA Purified Terephthalic Acid (PTA) manufacturing plant in Mangalore. An Amendment Agreement formalizing the renewed collaboration with global petrochemical leader INEOS was signed in the capital, marking a significant milestone in GMPL’s journey towards operational excellence.
The PTA manufacturing plant, located in the Special Economic Zone (SEZ) of Mangalore, had faced challenges due to insolvency proceedings of its previous owner, JBF Petrochemicals (JBF). 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 has been strategically working to address legacy issues and restart the plant.
Chairman of GMPL and GAIL Director (HR) Ayush Gupta emphasized the significance of this renewed partnership, stating, “Through this strategic collaboration, GAIL aims to position GMPL as a key player in the domestic PTA market while contributing to India’s petrochemical manufacturing growth.”
RK Singhal, GAIL Director (BD), highlighted the broader implications of the project, noting, “The successful realization of this project is expected to positively impact the nation by reducing the import burden and strengthening India’s manufacturing capabilities in the petrochemical sector.”
The amendment agreement with INEOS is designed to enhance the plant’s operational efficiency and align its production capabilities with evolving market demands. This development is in line with the Government of India’s Atmanirbhar Bharat initiative, aiming to foster self-reliance and bolster India’s industrial base.
INEOS, a global powerhouse in petrochemicals, specialty chemicals, and oil products, brings its technical expertise and innovative solutions to the partnership. With this collaboration, GMPL is poised to leverage world-class processes to ensure the long-term stability and competitiveness of its PTA plant.
This renewed engagement signifies a pivotal moment in India’s efforts to strengthen its petrochemical industry and reduce reliance on imports, reaffirming GAIL’s commitment to driving growth and innovation in the sector.
