State-owned Gujarat Alkalies and Chemicals (GACL), the largest caustic soda producer in the country, is on an expansion drive. After successful commissioning of its hydrogen peroxide plant at Dahej a few months back, Vadodara-based state PSU has now firmed up its plans to infuse a fresh investment of more than Rs 500 crore for taking up new projects and adding power generation capacity reports ET. The Rs 1,200-crore GACL has decided to expand the caustic-chlorine production capacity of its facility at Dahej by 300 tonnes per day (TPD) and will also add 50 TPD at Vadodara facility.

The capacity addition will generate 300 TPD of caustic lye and caustic flakes everyday. Apart from this, the company will also be able to produce 275 to 280 TPD of chlorine at its Dahej plant. “The company will be investing around Rs 200 to Rs 250 crore for expansion of caustic-chlorine production capacity,” GACL MD Guruprasad Mohapatra told ET. The demand for chlorine is increasing and GACL has effective marketing tie-ups with chlorine users in the industry. Having tie-ups with downstream industries becomes very important, as chlorinemanufacturers in the market do not have enough tie-ups. Recently, the company’s board of directors gave a go-ahead to GACL’s capacity plan.

It may be mentioned here that GACL is the largest caustic soda producer in the country with a production capacity of 3,58,760 tonnes per annum. In order strengthen its position further, GACL is also focusing more on power generation. Power, being a major input in caustic soda production, the company is also taking new power projects to achieve self-reliance in power generation. GACL is also considering to set up 50 MW gas-based power plant at its Dahej facility, for which company plans to invest around Rs 200 crore for the project.

Apart from this, the company also plans to set up another power plant of 30 -35 MW at its Vadodara facility. The Vadodara project will involve an investment of around Rs 100 crore. Additionally, the company is also investing around Rs 125 crore for its 24-MW wind mill project at Kutch. Recently, the company laid the foundation stone of its wind mill project, which expected to commission by February next year. “After the completion of all power projects currently in hand, we will become self-reliant in power generation”, Mr Mohapatra added.