GAIL (India) has proposed to set up a poly butadiene rubber (PBR) plant at Dahej, in Bharuch district of Gujarat.

The project, with 1,10,000 tpa capacity, will entail an investment of Rs 2,574.45 crore. Of the total project cost, the company is planning to borrow Rs 561.52 crore from overseas.

GAIL is looking forward to a joint venture with ONGC for the project. The proposed unit is expected to be completed by FY17.

The company will source the raw material -- butadiene -- from the ONGC Petro Additions' project, which is expected to be commissioned by FY15. At present, GAIL is in discussions with ONGC Petro Additions to ink a long-term contract for procurement of butadiene. ONGC Petro Additions is setting up a greenfield petrochemical project at Dahej.

GAIL will source technology from Japan's JSR Corporation and plans to appoint Engineers India (EIL), as the engineering, procurement and construction management consultant for the unit.

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