AHMEDABAD: State-run Gujarat Alkalies and Chemicals Ltd (GACL) today said it is likely to set up a 2 lakh tonnes per annum (TPA) caustic soda project in joint venture (JV) with Nalco at Dahej.

“We in JV with Nalco shall set up a 2 lakh TPA capacity caustic soda project at Dahej. The feasibility study for it has been assigned to consultants,” GACL Managing Director M S Dagur told PTI.

“We expect the study to come up early in November, and a final decision will be taken thereafter,” he said.

According to GACL, the estimated project cost could be between Rs 600 crore and Rs 700 crore.

Earlier, the company had stated it was exploring possibilities to set up a 2 lakh TPA caustic soda project in JV with Nalco and a 1 lakh TPA chloromethane project over the next two to three years.

GACL, is amongst India’s largest chlor alkali makers, with major in caustic soda.

The company is amongst the largest producers of caustic soda (various categories) in India with a capacity of over 3.5 lakh TPA, spread over its two complexes at Vadodara and Dahej in Gujarat.

It has been witnessing severe competition in caustic soda, caustic potash, choloromethanes and Hydrogen Peroxide group of products due to dumping of these products in India.

GACL’s, 20,000 TPA Sodium Chlorate project at Dahej complex is in advance stages of impelmentation and is scheduled for commissioning during first quater of 2013-14, a company statement said.