State-run caustic soda major Gujarat Alkalies and Chemicals Ltd (GACL) has decided to set up 100,000 tonnes per annum (TPA) chloromethane project on its own and is currently scouting for suitable technology suppliers for the project.
Earlier, GACL had entered into a joint venture (JV) with a subsidiary of Dow Chemicals, a global leader in chemical industry, for this project at Dahej in Gujarat.
Both the companies had entered into a memorandum of understanding (MoU) in 2008 for the project. "However, Dow took so much time in implementing the project and there were also some problems. As a result, GACL decided to go solo in implementing this project," said government officials closely monitoring the development. Both the JV partners had envisaged an investment of Rs 600 crore for the project earlier.
According to GACL statement, 100,000 tonnes per annum chloromethane project is expected to be set up over next two-three years. "The production capacity that we are planning for this chloromethane project is half of what was actually planned in joint venture with Dow Chemicals subsidiary," a top company official added.
The proposed capacity has been halved considering the marketing aspect and other product basket of the company. After having snapped ties with Dow Chemicals, the state PSU seems to have put this project on fast track as the company has already started looking for technology suppliers.
GACL believes that it has the capacity to develop such project and all it needs is a technology provider.
"We are at present negotiating with technology suppliers and hope to rope in better technology partner this time," said a top company official. When asked if the technology supplier would be given a partnership in the project, the company official said that nothing has been decided on this aspect.
