German chemical giant BASF on Thursday said it has put on hold plans to set up a USD 4-billion chemical complex in Gujarat in partnership with Adani group, Adnoc and Borealis, due to economic uncertainties caused by the COVID-19 pandemic.
In October 2019, billionaire Gautam Adani-run Adani Group had forged a partnership with the UAE's oil firm Adnoc, BASF and Austria's Borealis to study the feasibility of setting up the USD 4-billion chemical complex at Mundra in Gujarat by 2024.
"The global economic uncertainties caused by the pandemic have led the partners to reviewthe timing for undertaking this investment. Despite all attempts to optimise the scope and configuration, the project has been put on hold," BASF said in a statement on its website.
The four partners remain convinced about the strong fundamentals represented by the Indian market and agreed to periodically explore market conditions and discuss any opportunity that may arise over time, it added.
As part of a four-party memorandum of understanding, Abu Dhabi National Oil Company (ADNOC), Adani Group, BASF and Borealis AG have completed a joint feasibility study for a chemical complex in Mundra, Gujarat, the statement said.
The project study comprised a world-scale propane dehydrogenation plant, a polypropylene (PP) production and an acrylics value chain complex.
The planned location at Adani'sMundra site would enable access to a world-class port and renewable energy supply.
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