New Delhi: State-owned gas utility GAIL (India) Ltd has re-engaged a process licensor for the revival of a PTA manufacturing plant at Mangalore, the firm said Thursday.
The company, through its wholly-owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), re-engaged INEOS to support the plant's revitalisation, formalising this renewed collaboration through an Amendment Agreement signed here, it said in a statement.
"This marks a significant step towards the revival of GMPL's 1.25 million tonnes per annum purified terephthalic acid (PTA) manufacturing plant located in the Special Economic Zone (SEZ), Mangalore," the statement said.
The original agreement with INEOS was executed by JBF Petrochemicals (JBF), which could not be realised due to 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, the state-owned firm is now working to overcome the legacy challenges and ensure the plant's successful on-streaming and long-term operational stability.
GMPL chairman and GAIL Director (HR) Ayush Gupta said, "Through this strategic partnership and renewed focus, GAIL aims to position GMPL as a key player in the domestic PTA market while supporting the country's growth in petrochemical manufacturing."
GAIL Director (Business Development) RK Singhal said, "The successful realisation of this project is expected to have a positive impact by reducing the country's import burden and strengthening India's manufacturing capabilities in the petrochemical sector".
The amended agreement with INEOS, signed on Wednesday, is expected to enhance the plant's operational efficiency and align production capabilities with market demand.
INEOS Group is a global manufacturer of petrochemicals, speciality chemicals and oil products.
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