GAIL re-engages process licensor for Mangalore PTA plant

28 Nov 2024 , 04:06 PM

GAIL (India) Ltd, the state-owned gas utility, has re-engaged a process licensor to revive a PTA manufacturing unit in Mangalore, the company announced Thursday. 

The business, through its wholly-owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has re-engaged INEOS to help the plant’s revitalization, with this renewed collaboration formalized by an Amendment Agreement inked here, according to a statement.

The original deal with INEOS was executed by JBF Petrochemicals (JBF), but it could not be realized due to insolvency proceedings. Following GAIL’s acquisition of JBF in June 2023 via the Corporate Insolvency Resolution Process (CIRP) of the National Company Law Tribunal (NCLT), the state-owned company is now working to overcome legacy challenges and ensure the plant’s successful on-streaming and long-term operational stability.

GMPL chairman and GAIL Director (HR) Ayush Gupta stated, “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.”

The updated agreement with INEOS, inked on Wednesday, is designed to improve the plant’s operating efficiency and better align production capacities with market demands.

INEOS Group is a global producer of petrochemicals, specialty chemicals, and petroleum products. 

At around closing, GAIL was trading 1.50% higher at ₹197.80, against the previous close of ₹194.88 on NSE.

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