GAIL (India) Limited is planning a significant investment of ₹600 billion to establish an ethane cracking unit in Ashta, Sehore district, Madhya Pradesh. The company has formally requested support from the Government of Madhya Pradesh for the project, which aims to boost India’s domestic petrochemical production. The state government has already begun the land acquisition process to facilitate this large-scale industrial development.
The proposed ethane cracking unit will be located in Ashta, Sehore district, and will require approximately 800 hectares of land. The total investment for this petrochemical facility is pegged at ₹600 billion. The planned capacity of the unit is 1.5 million tonnes per annum (mtpa).
The Madhya Pradesh Industrial Development Corporation Limited (MPIDC) will assist in providing the substantial land parcel needed for the project. The foundation stone for the unit is expected to be laid by February 2025. Construction and development will be a multi-year, phased execution. Commercial operations are targeted to commence by March 2031, reflecting the project’s scale and complexity.
With a production capacity of 1.5 mtpa, the ethane cracking unit is set to significantly enhance GAIL’s petrochemical manufacturing capabilities. The project is expected to strengthen India’s domestic petrochemical value chain. It will also support downstream industries such as plastics, chemicals, and polymers. Furthermore, the project is anticipated to generate large-scale employment during both its construction and operational phases. The unit will leverage Madhya Pradesh’s central location and its improving infrastructure.
The Madhya Pradesh government’s early initiation of land acquisition demonstrates its commitment to attracting capital-intensive industrial projects. The collaboration with MPIDC is crucial for ensuring streamlined land availability and infrastructure facilitation.
GAIL’s proposed ethane cracking unit in Sehore represents one of the largest petrochemical investments in Madhya Pradesh. This reinforces the state’s growing prominence as a key industrial destination. With a clear timeline, strong state backing, and a significant addition to capacity, the project aligns with India’s broader objectives of industrial growth. It also supports the nation’s goals of self-reliance in petrochemicals and long-term economic development.
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