Rosneft-backed Nayara Energy plans to invest Rs 68,000 crore (USD eight billion) to establish a 1.5 MTPA ethane cracker at its 20 MTPA refinery in Vadinar, Gujarat. This marks the first significant investment by a foreign company in India's petrochemical sector.

Nayara has commenced work on front-end engineering for the petrochemicals project. The Vadinar refinery offers strategic advantages, including integration opportunities, proximity to the port, and its location in India’s largest petrochemical consumption region, western India.

India's petrochemical capacity is projected to grow from 29.62 million tonne to 46 million tonne by 2030. To capitalise on this potential, several Indian companies, including Gail India, Indian Oil Corporation, and Bharat Petroleum, have committed over Rs 1.5 lakh crore to petrochemical projects.

 An ethane cracker breaks down hydrocarbons like ethane into ethylene, the primary chemical for producing plastics, adhesives, and synthetic rubber.