Nayara Energy has unveiled plans to invest ₹68,000 crore in setting up a 1.5 million tonnes per annum (MTPA) ethane cracker unit at its sprawling 20 MTPA refinery located in Vadinar, Gujarat. This marks the first significant investment by a foreign company in India’s petrochemical sector, highlighting the industry's growing global appeal.  

1. Strategic Advantages of Vadinar Refinery  

The Vadinar facility is uniquely positioned to support the new petrochemical unit. Its integrated infrastructure and proximity to a well-connected port offer logistical efficiencies and cost advantages. Additionally, its location in western India situates it near the country’s largest and most lucrative petrochemical markets, ensuring steady demand for its output.  

2. Nayara Initiates Front-End Engineering 

The company has already begun the front-end engineering process for the project, signaling a firm commitment to bringing this ambitious plan to fruition. Once operational, the ethane cracker will transform hydrocarbons such as ethane into ethylene, a critical raw material for producing synthetic rubber, adhesives, and plastics—essential components for various industries.  

3. India’s Petrochemical Industry on the Rise  

India’s petrochemical capacity is set to witness substantial growth, increasing from 29.62 million tonnes in 2023 to an estimated 46 million tonnes by 2030. Recognizing the immense potential of this sector, leading domestic companies like Indian Oil Corporation, Gail India, and Bharat Petroleum have collectively committed over ₹1.5 lakh crore to various petrochemical initiatives.  

4. Bharat Petroleum and Gail’s Ethane Cracker Projects 

Apart from Nayara’s ambitious venture, Bharat Petroleum is investing close to USD 6 billion to construct a similar ethane cracker at its refinery in Bina, Madhya Pradesh. Gail India has also announced an investment of ₹60,000 crore for a 1.5 MTPA ethane cracker unit in Madhya Pradesh. These projects underline the growing importance of ethane crackers in boosting the production of vital industrial materials and meeting rising demand.  

5. A New Era for India's Petrochemical Sector 

With Nayara Energy’s entry into the petrochemical industry and robust contributions from domestic players, India is poised to become a global petrochemical powerhouse. The strategic investments and infrastructure development promise not only economic growth but also a strengthened position for the country in international markets.