Click the icon to add a specified price to your Dashboard list. This makes it easy to keep track on the prices that matter most to you.
Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, plans to set up a coal-to-chemical plant in Odisha’s Sundargarh district with a capital expenditure of ₹84,000 crore. Estimated to create employment opportunities for around 36,000 skilled, semi-skilled, and unskilled workers, the project has received final approval from the state government at its 42nd High-Level Clearance Authority (HLCA) meeting, chaired by Chief Minister Mohan Charan Majhi. Further details of Adani’s coal-to-chemical project are awaited.
This project is part of a total of 12 proposals approved by the HLCA, entailing a combined capital expenditure of Rs 1.42 lakh crore and the potential to generate nearly 50,000 employment opportunities. Coinciding with the HLCA meeting, the Single Window Clearance Authority (SLWCA), chaired by Odisha Chief Secretary Manoj Ahuja, approved projects worth Rs 4,019.53 crore, expected to create 16,590 jobs. Together, these clearances represent a total investment of about Rs 1.46 lakh crore in the state.
These projects have been strategically distributed across 14 key industrial districts — Angul, Bolangir, Cuttack, Dhenkanal, Ganjam, Jagatsinghpur, Jajpur, Jharsuguda, Kandhamal, Kendrapara, Khordha, Puri, Sambalpur, and Sundargarh — to ensure balanced industrialisation and inclusive regional growth. These initiatives are expected to boost industrial expansion, create more skilled employment, and promote sustainable development across Odisha, further strengthening the state’s position as a leading destination for both domestic and global investors.
Mundra project
Earlier, Adani Enterprises Ltd (AEL) had proposed setting up a coal-to-chemical project in Mundra for manufacturing polyvinyl chloride (PVC), marking the business conglomerate’s entry into petrochemical production. The Mundra PVC project is currently in the final design, detailed engineering, and procurement stages, with commercial production for the first phase expected to begin by December 2026.
After being halted in early 2023, the project was revived once Adani secured over US$5 billion in equity and debt financing through a consortium led by the State Bank of India (SBI). The project, being developed by AEL’s subsidiary Mundra Petrochem Ltd, is planned to have a total capacity of 2 million tonnes per annum (MTPA) of PVC, to be implemented in phases.
The first phase of the PVC plant is expected to be commissioned by FY2027-28 (April–March) and will form part of a larger petrochemical cluster being developed by AEL. In addition to PVC, the project will include chlor-alkali, calcium carbide, and acetylene units. Adani plans to use an acetylene and carbide-based production process for the plant. Environmental clearance and consent to establish have already been secured. The project aims to bridge India’s domestic supply gap and reduce dependence on imported PVC, supporting the country’s self-reliance in key petrochemical intermediates.
Restart of Mundra project
Over 16 months after suspending operations, Adani Group’s flagship company, Adani Enterprises Ltd (AEL), revived its Mundra project in July 2024. AEL had incorporated a wholly owned subsidiary, Mundra Petrochem Ltd, in 2021 to establish a 2 million tonnes per annum (MTPA) greenfield coal-to-PVC plant on land owned by its group company, Adani Ports and Special Economic Zone (APSEZ), in the Kutch district of Gujarat. Reports indicate that AEL is developing a petrochemical cluster in Mundra, which will also house the 2 MTPA PVC manufacturing facilities. The project is proposed to be executed in phases, with Phase I of the PVC plant slated for commissioning by December 2026.
In March 2023, Adani Group decided to suspend work on its ₹34,900-crore petrochemical project in Gujarat to consolidate operations and address investor concerns following allegations made by U.S.-based short-seller Hindenburg Research. The decision also cast uncertainty over its planned raw material sourcing business. The Group had earlier proposed to venture into the supply of raw materials to support its PVC plant. Although the coal-to-PVC project was initially considered a costly undertaking, it was seen as a significant step toward enhancing India’s self-reliance in PVC production.
The original plan
Three years ago, the Adani Group proposed setting up a 2 million tonnes per annum (MTPA) coal-to-PVC plant at an investment of around US$4 billion. The project was expected to produce various PVC grades, including suspension PVC resin, chlorinated PVC (CPVC), and emulsion PVC (paste). The required feedstock coal, estimated at about 3.1 MTPA, was proposed to be sourced from Australia, Russia, and other countries. The Group had projected commercial production to commence within four years of receiving statutory approvals.
A few months later, the Group issued emails to its vendors and equipment suppliers, directing them to suspend work on at least 1 MTPA of the greenfield PVC project due to circumstances beyond its control. The communication further instructed vendors and suppliers to “suspend all activities within the scope of work and performance of all obligations until further notice due to unforeseen scenarios” for Mundra Petrochem Ltd’s Green PVC project.
The email also stated that the Group was re-evaluating various projects under implementation across different business verticals. Some ongoing verticals were being reviewed for their continuation and timeline revisions based on future cash flows and financing. According to reports, work under the primary industry vertical was expected to undergo further re-evaluation over the following months.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
