Manali Petrochemicals said on Monday that it is set to restart operations at Plant – 1 in Manali, Chennai.
The Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, has allocated a fixed quantity per day of propylene to Manali Petrochemicals Limited, to be supplied by Chennai Petroleum Corporation Limited (CPCL), Chennai, the company said in a filing to the exchanges.
In view of the aforesaid propylene allocation and the expected resumption of feedstock supply from CPCL pursuant to the Revised OM, the company will commence the process of restarting operations at Plant-1, Manali, Chennai, it added.
Operations at Plant-1 are expected to resume in a phased manne rupon receipt of propylene supplies from CPCL.
“The Force Majeure condition that had necessitated the temporary suspension o fPlant-1 operations stands resolved to the extent of the propylene allocation made by the Government of India, Manali Petrochem noted.
MPL had temporarily suspended operations at one of its plants in Chennai in March after CPCL stopped supplying propylene with immediate effect, citing a directive from the Ministry of Petroleum and Natural Gas (MoPNG).
Propylene is the primary and indispensable feedstock for MPL’s manufacturing operations, and the company sources it exclusively from CPCL.