New Delhi, India – In a significant development for India’s energy sector, Gas Authority of India Limited (GAIL) and Bharat Petroleum Corporation Limited (BPCL) have agreed on a major deal worth Rs 63,000 crores. This collaboration marks a major step in enhancing India's petrochemical industry.

What is the Deal About?

GAIL, a leader in the gas and petrochemical sectors in India, will purchase a specific type of gas called propane from BPCL for 15 years. BPCL is set to supply 600,000 tonnes of propane annually to GAIL. This propane is crucial for GAIL's new plant in Usar, Maharashtra, which will be the first of its kind in India.

Why is This Deal Important?

This agreement is pivotal for both GAIL and BPCL. For GAIL, it ensures a consistent supply of propane, essential for producing various petrochemical products. BPCL, on the other hand, will effectively utilize its resources and expand its market reach.

The Usar Plant

The Usar plant, a significant initiative for GAIL, is scheduled to commence operations in 2025. It will convert propane into propylene, and subsequently into polypropylene, a widely used plastic. The demand for polypropylene is expected to increase significantly, and this plant aims to cater to that growing need.

How Will This Deal Help?

Economic Growth: This deal is expected to significantly boost India's economy by strengthening the petrochemical industry.
Job Creation: The expansion of the industry is anticipated to create numerous job opportunities.
Improved Product Availability: With a steady propane supply, GAIL can produce a greater variety of high-quality products.
Industry Leadership: This deal enhances the position of both GAIL and BPCL in the petrochemical sector, allowing them to undertake more ambitious projects.
Company Statements

Both GAIL and BPCL express enthusiasm about this partnership, viewing it as a testament to their dedication to advancing India's petrochemical sector. The agreement, signed by top executives from both companies, symbolizes the beginning of a significant collaborative effort.