India's GAIL & IOC ink MoU to assess Rs.10,000 cr petrochem plant in Bihar

01-Nov-08

India's state-owned Gas Authority of India Ltd (GAIL) has inked a memorandum of understanding (MoU) with Indian Oil Corp (IOC) for exploring the option of setting up a Rs. 10,000 cr petrochemical plant at Barauni in state of Bihar. GAIL and IOC are expected to conduct a feasibility assessment for the project which is believed to take five years for realisation. The planned chemical plant will source IOC's 250,000 tons of naphtha from its Barauni refinery and the GAIL's natural gas from eastern offshore and LNG imported through the proposed Jagdishpur-Haldia pipeline. The nature of alliance and project structure is undecided and there is a possibility of either a 50:50 JV or a public-private partnership.