GAIL has put its plan on the hold to set up a mega petrochemicals plant
overseas in JV with Reliance Industries (RIL) citing slump in the demand for
petrochemicals owing global economic slowdown. Instead, the company is planning
to invest Rs 8,200 crore to augment capacity of its unit in Uttar Pradesh.
The company's board has approved raising the capacity of the company's Pata
petrochemicals plant to 9,00,000 tpa in Uttar Pradesh. The expansion is to be
completed in about 42 months.
In December 2007, GAIL and RIL had signed an MoU to jointly set up a gas
based petrochemicals plant and was looking at Qatar, Iran, Algeria, Nigeria and
Russia for locating the unit. The two firms were to float a SPV for the purpose
and set a three-year deadline for starting work.
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