New Delhi: Billionaire Gautam Adani-run Adani Group has forged a partnership with UAE's oil firm Adnoc, German chemical giant BASF and Austria's Borealis to study the feasibility of setting up a USD 4 billion chemical complex at Mundra in Gujarat by 2024.
The four firms have signed a memorandum of understanding (MoU) to "engage in a joint feasibility study to further evaluate a collaboration for establishment of a chemical complex in Mundra, Gujarat," the companies said in a statement.
In January this year, Adani Group had announced plans to set up a Rs 16,000 crore chemical factory at Mundra in partnership with BASF. The present MoU, the statement said, was the next step of the January announcement.
"With the inclusion of Abu Dhabi National Oil Company (Adnoc) and (Europe's second-largest producer of polyethylene and polypropylene) Borealis as potential partners, the parties are examining various structuring options for the chemical complex that will leverage the technical, financial and operational strengths of each company," it said.
The total investment is estimated to be up to USD 4 billion (about Rs 28,400 crore), it added, but did not state which company will hold how much stake.
The partners aim to finalise the joint feasibility study by the end of Q1 2020. Production is intended to commence in 2024.
