ONGC PetroAdditions Shifts Focus to Domestic Market, Exits SEZ Status

New Delhi (The Uttam Hindu): ONGC PetroAdditions Ltd (OPaL), a subsidiary of state-owned Oil and Natural Gas Corporation (ONGC), has relinquished its 'only-for-export' status, opting to focus on the growing local petrochemical market. OPaL received final approval to exit the Dahej Special Economic Zone (SEZ), effective March 8, 2025, and will now operate as a Domestic Tariff Area (DTA) unit.

This shift means OPaL can now cater primarily to the Indian market, no longer bound by export obligations, and can avoid customs duties on products sold within the country. The move is expected to improve the company’s competitiveness and profit margins.

Despite facing high debt and losses of Rs 3,546 crore in the 2023-24 fiscal year, OPaL has received significant financial support from ONGC, which has increased its stake from 49.36% to 95.69%. The company has struggled with unprofitable exports but aims to stabilize through cost-efficiency programs and innovation. OPaL's total sales for 2023-24 stood at 1.771 million tonnes, with a focus on polymer and chemical production.

OPaL’s decision marks a significant shift in its strategy as it focuses on sustaining growth and improving profitability in the domestic market.