GAIL Partners with INEOS to Revitalize Mangalore Petrochemical Facility
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New Delhi, Nov 28 (NationPress) The state-owned gas behemoth GAIL (India) Limited has revealed that its fully-owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL) has re-established its partnership with process licensor INEOS to aid in the rejuvenation of its facility.
The renewed alliance has been formalized via an amendment agreement signed here, as stated by GAIL.
This represents a crucial milestone towards the revival of GMPL's 1.25 MMTPA Purified Terephthalic Acid (PTA) production plant situated in the Special Economic Zone (SEZ) of Mangalore, according to a GAIL announcement.
The partnership signifies a vital advancement in the endeavors to restore the PTA facility to operation. The initial agreement with INEOS was made by JBF Petrochemicals (JBF), which could not be executed due to insolvency issues.
After GAIL's acquisition of JBF via the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is now focused on overcoming legacy challenges to ensure the plant’s effective launching and sustainable operational stability.
During the event, Chairman of GMPL and GAIL Director (HR) Ayush Gupta stated, “With this strategic alliance and renewed commitment, GAIL aims to establish GMPL as a significant entity in the domestic PTA market while fostering the country’s growth in petrochemical production.”
GAIL Director (Business Development) R. K. Singhal commented, “The successful execution of this project is anticipated to positively influence by alleviating the nation’s import dependency and bolstering India’s manufacturing prowess in the petrochemical industry.”
The amended accord with INEOS, signed on Wednesday, is expected to improve the facility's operational performance, synchronize production capabilities with market needs, and contribute to India’s vision of self-sufficiency under the Centre's Atmanirbhar Bharat initiative, as per the company.
INEOS Group is a worldwide producer of petrochemicals, specialty chemicals, and oil products.
GAIL reported a 10.2 percent rise in net profit at Rs 2,693.5 crore for the July-September quarter of the current fiscal year, up from Rs 2,444.05 crore during the same period last year.
The company’s petrochemical division returned to profitability in this quarter, earning Rs 146.19 crore.
