Nayara Energy, backed by Rosneft, is set to invest ₹68,000 crore to establish a 1.5 million ton per annum (mtpa) ethane cracker at its twenty mtpa refinery in Vadinar, Gujarat.
The initiative marks a significant milestone as the first major foreign investment in India’s petrochemical sector.
Front-End Engineering Work Underway
Nayara Energy has already initiated front-end engineering for the petrochemical project, according to a top industry official.
The official confirmed that Nayara is progressing steadily in its plans to diversify into the petrochemical domain.
Strategic Development in Petrochemicals
In its FY24 annual report, Nayara highlighted its phase-wise asset development strategy adopted in 2018 to enter the petrochemical sector.
The company has emerged as a strong player in the industry. It benefits from key advantages like integration with its refinery, proximity to the port, and its location in western India, home to the country’s largest petrochemical consumption region.
Industry-Wide Investments Surge
Nayara’s move aligns with broader trends in India’s petrochemical industry.
Companies such as GAIL India, Indian Oil Corporation Limited (IOCL), and Bharat Petroleum Corporation Limited (BPCL) have collectively announced investments exceeding ₹1.5 lakh crore over the past year to expand their petrochemical activities.
Adani Group Joins the Petrochemical Race
Adani Petrochemicals, a subsidiary of Adani Enterprises, recently entered the sector. They did this through an equal joint venture with Thailand’s Indorama Resources, adding to the industry momentum.
The collaboration aims to develop chemical, petrochemical, and refinery operations. This signals increasing global interest in India’s growing petrochemical market.
As reported by indiainfoline.com, the wave of investment underscores India’s rising prominence in the petrochemical landscape. Nayara Energy’s Vadinar project will play a transformative role.
