Lok Sabha Question No. 4485 (UNSTARRED), answered on 2026-03-19
Subject: Financial Performance of Pata Petrochemical Plant
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri Kali Charan Singh

## LOK SABHA UNSTARRED QUESTION No. 4485

TO BE ANSWERED ON 19 th  March, 2026

## FINANCIAL PERFORMANCE OF PATA PETROCHEMICAL PLANT

4485.  SHRI KALI CHARAN SINGH:

## पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a)  whether  it  is  a  fact  that  the  petrochemical  segment  of  GAIL  (India)  Limited  including  its major Pata Petrochemical Plant in Uttar Pradesh has incurred losses and experienced financial volatility  during  the  financial  year  2024-25,  particularly  in  the  initial  quarters  and  if  so,  the details thereof, quarter-wise;
- (b)  the  specific  reasons  for  such  losses,  including  high  feedstock  gas  prices,  decline  in polymer prices, reduced capacity utilisation, shutdowns and prevailing global market conditions;
- (c)  whether  the  Government  has  reviewed  the  performance  of  the  Pata  Petrochemical  Plant and sought any explanation from the management in this regard and if so, the details thereof;
- (d) the corrective and strategic measures taken by GAIL (India) Limited to reduce such losses including feedstock optimisation, cost rationalisation, infrastructure augmentation and diversification of product portfolio; and
- (e) the timeframe by which the plant is expected to return to sustainable profitability?

## ANSWER

पेट Ō ोिलयम और Ůाक ृ ितक गैस मंũालय मŐ राǛ मंũी ( ŵी सुरे श गोपी )

## MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI)

- (a)  The quarter-wise Profit Before Tax (PBT) for the Pata Petrochemical Plant for the financial year 2024-25 is as under:
- (b)  The reasons for the losses include the nature of the feedstock used at the Pata plant, which utilises  natural  gas,  as  opposed  to  naphtha  or  ethane  used  by  most  other  plants.  The  polymer business is cyclical in nature, and prices of gas and polymers remain dynamic. During FY 202425, global polymer prices remained low in line with low crude oil prices, while feedstock gas prices remained high, leading to lower margins at GAIL's petrochemical plant at Pata. Despite these market conditions, the plant achieved a record capacity utilisation of approximately 103%, along with its highest-ever production.
- (c)  The Government of India reviews the performance of GAIL (India) Limited, including its major units such as the Pata Petrochemical Plant, through established institutional mechanisms, including  the  Memorandum  of  Understanding  (MoU)  framework  and  periodic  performance review meetings conducted by the Ministry.

| Financial Year 2024-25   |   PBT (Rs. In Crores) |
|--------------------------|-----------------------|
| Q1                       |                   -42 |
| Q2                       |                   157 |
| Q3                       |                     5 |
| Q4                       |                  -158 |
| Total                    |                   -38 |

(d)  &  (e)  To  optimise  the  operations  of  the  Pata  Petrochemical  Plant,  GAIL  (India)  Ltd.  has undertaken  a  series  of  measures,  inter  alia,  including  cost  rationalisation  through  energy optimisation, deployment of energy-efficient equipment, system improvements aimed at enhancing  yields,  digitalisation  of  operational  systems,  and  optimum  utilisation  of  the  steam network.  The  Company  has  also  undertaken  product  diversification  initiatives,  including  the addition of polypropylene products alongside the existing polyethylene product portfolio, along with various other systematic and technical improvements.

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