GHCL will set up a greenfield soda ash plant of 0.5 million tonne capacity in Kutch, Gujarat, to increase its manufacturing capacities from 1.1 million tpa to 1.6 million tpa.
This is seen as a move to help reduce the import dependence of the key ingredient for glass, ceramics and detergent industries.
The greenfield plant, to be set up with an investment of Rs 3,000 crore, will require about 800 acre of land, of which about 70 percent has already been acquired.
The company, with its current 1.1 million tonne facility at Sutrapada in Gir Somnath district in Gujarat, caters to about 25 percent of domestic soda ash demand in the country.
During Vibrant Gujarat Summit in 2017, GHCL had signed a memorandum of understanding (MoU) with the Gujarat government to set up a greenfield chemical complex in Kutch, Gujarat.
GHCL looks to set up 11,00,000 tpa light soda ash, 5,00,000 tpa dense soda ash, 2,00,000 tpa sodium bicarbonate manufacturing plants besides a solid fuel-based 120 MW captive co-generation power plant and other utilities in Mandvi taluka of Kutch district.
The required investments will be met through a mix of internal accruals and debt. The plant will take about three-four years to be ready.