Mumbai: GAIL (India) Limited has signed a technology agreement with Mitsui Chemicals Inc, Japan, for setting up a new, dedicated high-density poly-ethylene (HDPE) plant with a capacity of 1,00,000 TPA at its petrochemical complex at Pata, Uttar Pradesh. The project with an estimated cost of Rs647 crore is scheduled for completion by April 2006.

The agreement provides the license to GAIL to set up the HDPE plant based on Mitsui''s CX technology. The plant will also have the capability to produce MDPE and PE-100 grades. GAIL already operates a HDPE plant of 1,00,000-TPA capacity based on Mitsui''s technology at its petrochemical complex at Pata. With this addition, the company''s present polymer capacity of 3,10,000 TPA will increase to 4,10,000 TPA. GAIL has recently completed the de-bottlenecking of its LLDPE / HDPE (swing) plant at a cost of Rs76 crore to increase its polymer capacity to 3,10,000 TPA from the earlier 2,60,000 TPA.

GAIL has also proposed an investment of Rs10,723 crore for enhancing its petrochemical production capacity and adding three more projects in different parts of the country. GAIL recently signed an MoC with the Kerala State Industrial Corporation (KSIDC) for putting up a naphtha-based petrochemical complex in Kasargod district near Kochi. The Rs 7,000-crore integrated grass root naphtha-based petrochemical complex will produce 800 KTA of ethylene and 400 KTA of propylene.

GAIL has also prepared a pre-feasibility report for the Assam Gas Cracker, which will have an estimated project cost of Rs2,500 crore to produce 1,60,000 TPA of ethylene and a downstream unit of 1,60,000 TPA of LLDPE / HDPE. GAIL has already signed an MoU with Haldia Petrochemicals for setting up a joint venture styrene butadiene rubber (SBR) plant with a capacity of 100 KTA. The investment for this plant is estimated to be approximately Rs 500 crore.