You are here: Home » Companies » News
Business Standard

GSFC restarts methanol plant after six years to aid import substitution

The 525-metric-tonnes-per-day unit was commissioned in 2013 and operated for 11 months before shutting down in April 2014 due to non-viability

GSFC | India imports

Vinay Umarji  |  Ahmedabad 

power, electricity, thermal, plant

Aiming to support import substitution, state-owned Gujarat State Fertilizers & Chemicals Limited (GSFC) has restarted its methanol plant after six years. With installed capacity of 525 metric tonnes per day, the plant was commissioned in 2013 and operated for 11 months before shutting down in April 2014 due to non-viability.

However, now after over six years, has re-started the plant with methanol being produced from August 31 2020 as per the prescribed specifications and quality. According to the company, the plant is running smoothly and sales have started in the domestic market.

The first consignment of 30 tonnes was dispatched on August 31 even as the plant is likely to reach a daily production of 470 metric tonnes by September 10.

ALSO READ: Vedanta moves Supreme Court seeking reopening of Sterlite copper plant

Methanol is used in several industrial applications like Formaldehyde, API formulations, Methyl Amines, Dyes & Intermediates, Paints, Solvents, Adhesives and Pesticides, among other things. In the Indian market, however, the major application of methanol is in Formaldehyde, which accounts for 60 per cent of methanol consumption.

Currently, GNFC and RCF are the only two producing methanol in India. As a result, India's demand for methanol is met by imports primarily from Middle East countries.

With the resumption of its methanol plant, is estimating an additional turnover of Rs 150 crore in the current financial year 2020-21.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, September 02 2020. 19:31 IST