GAIL (India) Ltd, a Maharatna PSU, has re-engaged a process licensor for the revival of its PTA manufacturing plant in Mangalore, the company announced on Thursday. Through its fully owned subsidiary, GAIL Mangalore Petrochemicals Limited (GMPL), the company has renewed its collaboration with INEOS to support the plant’s revitalization. This partnership was formalized with the signing of an Amendment Agreement.
The statement highlights that this marks a significant milestone in the revival of GMPL’s 1.25 million tonnes per annum purified terephthalic acid (PTA) manufacturing plant located in the Special Economic Zone (SEZ) in Mangalore.
The original agreement with INEOS was signed by JBF Petrochemicals (JBF), but the project was not realized due to JBF’s 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, GAIL is now working to address the legacy challenges and ensure the plant’s successful operation and long-term stability.
Mr. Ayush Gupta, GMPL Chairman and GAIL Director (HR), stated, “Through this strategic partnership and renewed focus, GAIL aims to position GMPL as a key player in the domestic PTA market, contributing to the growth of the country’s petrochemical manufacturing sector.“
Mr. RK Singhal, GAIL Director (Business Development), added, “The successful realization of this project is expected to reduce India’s import burden while strengthening the country’s manufacturing capabilities in the petrochemical sector.“
The renewed agreement with INEOS, signed on Wednesday, is expected to improve the plant’s operational efficiency and better align its production capabilities with market demands. INEOS, a global leader in petrochemicals, specialty chemicals, and oil products, will play a crucial role in enhancing the plant’s output.
