ONGC Petro Additions Ltd (OPaL), which runs a mega petrochemical at a Special Economic zone at Dahej has decided to exit itself from overseas export unit. Company has now decided to initiate the process to get access to domestic tariff area to gain from the lower tax regime.
More than 80% of OPaL’s demand is from the domestic market. The plant is running at 100% capacity, up from about 70% last year. After ONGC acquires additional stake, OPaL will become a subsidiary of ONGC. OPaL’s Rs 30,000 crore petrochemical complex, which began commercial operations with a capacity to produce 1.1 mln tonnes a year of Ethylene and 4,00,000 tonnes/year of Propylene.
Gujarat itself is likely to draw 3-4 lakh crore of investment. As India looks to cut imports of petrochemicals and chemical to boost domestic production, several big-ticket investments have been lined up in the state by companies like Reliance Industries Ltd, Rosneft-backed Nayara Energy, Adani group, IOC among others.
