Will GAIL's Rs 60,000 crore mega ethane cracker project in Madhya Pradesh pose environmental risks?

GAIL (Gas Authority of India Limited), the leading natural gas supplier in India, has announced an ambitious plan to establish the nation's largest ethane cracker project. This mega-project, which will require an estimated investment of Rs 60,000 crore, is set to be located in Ashta, Sehore district, Madhya Pradesh. The ethane cracker will have a production capacity of 1,500 KTA (kilo tonnes per annum) and will produce a variety of ethylene derivatives.

The groundbreaking ceremony for this landmark project is anticipated to occur by February 2025, with commercial production slated to commence in the fiscal year 2030-31. In addition to the ethane cracker, a 70-hectare township is also being planned as part of the project infrastructure.

GAIL has already initiated formal requests to the Madhya Pradesh government for necessary support and facilitations. The Madhya Pradesh Industrial Development Corporation Limited (MPIDC) has commenced the process of allocating around 800 hectares of land for this venture. Approval from GAIL's Board of Directors will be sought following a positive response from the state government regarding these facilitations.

The project, which will establish a greenfield petrochemical complex, is expected to produce a range of petrochemical products including LLDPE (Linear Low-Density Polyethylene), HDPE (High-Density Polyethylene), MEG (Mono-Ethylene Glycol), and propylene. According to a statement from the Chief Minister's Office of Madhya Pradesh, this development is projected to create approximately 15,000 jobs during the construction phase and around 5,600 jobs during the operational phase.

GAIL’s plan to set up the largest ethane cracker in India marks a significant milestone in the country's industrial and economic landscape, promising substantial employment opportunities and bolstering the region's industrial infrastructure.

The groundbreaking ceremony is expected by February 2025, with commercial operations aimed to start by the financial year 2030-31.

What is an “Ethane Cracker”?

An ethane cracker is a type of industrial plant that initiates the transformation of ethane, a component found in natural gas, into various plastic products. The process begins by separating ethane from natural gas to produce ethylene, a fundamental building block for plastics and other industrial materials. Using extreme heat, these plants "crack" the molecular bonds in ethane, converting it into ethylene. This ethylene is then processed further into a resin, which serves as the raw material for manufacturing plastic products.

As new ethane cracker plants come online, there is a significant concern about the increase in plastic waste. Currently, around 10 million tons of plastic end up in the ocean annually. The growth of ethane cracker operations is expected to exacerbate the accumulation of plastic waste in landfills, oceans, and waterways.