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, GSFC 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.
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 companies 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, GSFC is estimating an additional turnover of Rs 150 crore in the current financial year 2020-21.