Page 146 - CW E-Magazine (18-3-2025)

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CHANGE OF PLANS

OPaL exits from Dahej SEZ to tap growing domestic

market

ONGC PetroAdditions Ltd. (OPaL), Rs. 18,365-crore. This has led to its
a subsidiary of the state-owned Oil and stake in the company rising from 49.36
Natural Gas Corporation (ONGC), has percent to 95.69 percent.
relinquished its ‘only-for-export’ unit sta-
tus for its Dahej SEZ as it aims to tap into OPaL achieved sales of 1.771-
the booming local petrochemical market million tonnes during the fi nancial
to drive a turnaround. In a stock exchange year 2023-24. Of these, 1.237-million
fi ling, ONGC said OPaL has received the tonnes were polymer sales. Domestic
fi nal approval for its exit from the Dahej share of polymer sales was down to 86
Special Economic Zone (SEZ). percent in the fi nancial year 2023-24
as compared to 91 percent in fi nancial
“Accordingly, OPaL shall ope- pane (C3) from the liquefi ed natural year 2022-23 due to oversupply in the
rate as a Domestic Tariff Area (DTA) gas (LNG) imported from Qatar. C2 domestic market on account of entry of
unit with effect from March 8, 2025,” and C3 streams are provided to OPaL a new polymer producer and also regu-
ONGC said. It added that the move which uses them to make polymers and lar imports at lower prices.
will improve its competitiveness for chemicals like benzene and butadiene.
supplies to be made to the DTA. This High debt and unlucrative exports had Overall market share of OPaL for
essentially means primarily catering to pushed OPaL into the red. It made a polymers stood at 11 percent in the
the domestic Indian market instead of loss of Rs. 3,546-crore in the 2023-24 fi nancial year 2023-24; 1 percent lower
focusing on exports, which is the pri- fi scal year and Rs. 2,392-crore loss in than last fi scal majorly on account of
mary purpose of an SEZ unit. It will the fi rst nine months of the current year. less production due to limited feedstock
now not have to pay customs duty on availability in some of the months, new
products sold within India, helping To mitigate the situation, ONGC capacity additions and intense competi-
improve margins. extended fi nancial support. It in- tion in the domestic market, the com-
fused additional equity capital upto pany’s latest annual report said. During
The move is primarily to gain Rs. 10,501-crore, converted back the FY2023-24, total chemical sales
access to the wider domestic market stopped compulsorily convertible was 0.534-million tonnes. OPaL sold
and potentially benefi t from the lower debentures (CCDs) amounting to around 64 per cent chemical products
corporate tax regime. ONGC’s C2C3 Rs. 7,778-crore and paid Rs. 86-crore in the domestic market and 36 per cent
project extracts ethane (C2) and pro- with respect to share warrants, totalling in export markets.

PIPE-MAKING FACILITY
Man Industries (India) opens spiral mill and coating facility

in Pithampur
Man Industries (India) Ltd., a With an investment of approxi- from the previous range of 28” to 120”.
Mumbai-headquartered provider of mately Rs. 100-crores, the facility has This enhancement will allow the com-
pipe manufacturing and infrastructure increased its capacity by an additional pany to cater to the increasing demand
solutions, has announced the inaugu- 50,000-tpa, expanding its total annual for high-quality narrow-range pipes
ration of its newly installed spiral mill production capacity from 100,000-tpa required in sectors such as oil & gas,
for narrow range pipes and an advanced to 150,000-tpa water transmission, and infrastructure
polyurethane (PU) coating facility development. The company said it is
(and 3 Layer Polyethylene (3-LPE) in The new facility will enable the progressing with its Saudi and Jammu
progress) at its manufacturing plant in company to manufacture pipes ranging plants, reinforcing its commitment to
Pithampur, Madhya Pradesh. from 12” to 120” in diameter, enhanced expanding its global footprint.

146 Chemical Weekly March 18, 2025

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