Rs 60,000 Crore Capex: This PSU Company to Set Up India's Largest Ethane Cracker Project in MP; Must-Watch

The company’s shares have delivered a return of around 98 per cent in just 1 year.

GAIL, the leading gas supplier in the country, has announced plans to establish a 1500 KTA ethane cracker project in Ashta, district Sehore, Madhya Pradesh, aimed at producing various ethylene derivatives. The projected investment for this endeavor is Rs 60,000 crore. In an official filing, GAIL stated that it approached the Madhya Pradesh government to facilitate necessary support for the project.

The Madhya Pradesh Industrial Development Corporation Limited is set to allocate approximately 800 hectares of land for the project, with the state government already initiating the process. GAIL will seek investment approval from its Board upon securing favorable conditions from the government.

This project, touted to be the country's largest ethane cracker project, includes plans for a greenfield petrochemical complex. The complex will produce petrochemicals such as LLDPE, HDPE, MEG, and propylene. It is estimated to generate employment for 15,000 individuals during the construction phase and about 5,600 jobs during operation.

Additionally, a 70-hectare township is proposed as part of the project. The groundbreaking ceremony is anticipated to occur by February 2025, with commercial production slated to commence in the financial year 2030-31, as per the statement released by the Chief Minister's Office of Madhya Pradesh.

Gail India, a Large-Cap company engaged in the gas distribution business, closed the day at Rs 208.05 per share on the BSE. Additionally, the stock has delivered a return of 98 percent in the past year and a multibagger return of around 102 per cent compared to its 52-weel low price.

As per the Quarterly Results, in the fourth quarter of FY24, the company recorded a revenue of Rs 32,756 crore, marking a 1.36 per cent year-on-year de-growth from Rs 33,207 crore in Q4 FY23. The operating profit for Q4 FY24 stood at Rs 3,849 crore, compared to Rs 556 crore in the same quarter of the previous fiscal year. The net profit for Q4 FY24 was Rs 2,474 crore, compared to Rs 643 crore.

Investors must keep this stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.