GAIL (India) Limited, the country’s leading gas supplier, has announced plans to set up a 1500 KTA (kilo tonnes per annum) ethane cracker project in Ashta, Sehore district, Madhya Pradesh. This ambitious project, set to be India’s largest ethane cracker, represents a significant investment of Rs 60,000 crore and is poised to boost the region’s industrial landscape.
In an official exchange filing, GAIL stated that it has requested the Madhya Pradesh government to provide suitable enablers to facilitate the project. The Madhya Pradesh Industrial Development Corporation Limited (MPIDC) will allocate approximately 800 hectares of land for the project, with the state government already initiating the necessary processes.
GAIL’s Board of Directors will seek investment approval following a favorable outcome regarding these enablers. The project will encompass a greenfield petrochemical complex, producing a range of petrochemicals such as Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), Monoethylene Glycol (MEG), and propylene.
“This project, involving an investment of about Rs 60,000 crore, will be the country’s largest ethane cracker project. It will also include a greenfield petrochemical complex, producing vital petrochemicals. The construction phase is expected to generate employment for 15,000 people, while around 5,600 people will find employment during the operational phase,” stated a release from the Chief Minister’s Office of Madhya Pradesh.
In addition to the industrial facilities, a 70-hectare township is proposed as part of the project, aiming to provide residential amenities for employees and their families. The ground-breaking ceremony is anticipated by February 2025, with commercial production slated to commence in the financial year 2030-31.
This project marks a significant step in strengthening India’s petrochemical industry and is expected to have a substantial economic impact on the region. GAIL’s strategic investment underscores the company’s commitment to enhancing the nation’s industrial infrastructure and generating substantial employment opportunities.
On the stock market, shares of GAIL were trading nearly flat on Monday, closing at ₹207.90.
This monumental project not only represents a milestone for GAIL but also heralds a new era of industrial development for Madhya Pradesh, reinforcing the state’s position as a key player in India’s economic growth.