After more than a month of shutdown triggered by a critical raw material shortage, Manali Petrochemicals is set to restart operations at its key Plant-1 facility in Manali, Chennai, following fresh government intervention.
The company had halted operations on March 12 after a complete stoppage of propylene supply from Chennai Petroleum Corporation Limited (CPCL), acting under directives from the Ministry of Petroleum and Natural Gas. The disruption forced the firm to invoke force majeure, stalling production at the plant.
Relief came through a revised policy from the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. The government has now stepped in to allocate a fixed daily quantity of propylene to Manali Petrochemicals, ensuring supply from CPCL to support pharmaceutical sector demand.
“This is in continuation of our intimation… regarding temporary suspension of operations at Plant-1, Manali, Chennai due to Force Majeure,” the company said in its official communication.
With feedstock supply expected to resume, the company confirmed it is initiating the restart process immediately. “The Company will commence the process of restarting operations at Plant-1, Manali, Chennai from today,” the statement noted.
However, operations will not return overnight. “Operations at Plant-1 are expected to resume in a phased manner upon receipt of propylene supplies from CPCL,” the company clarified, signaling a gradual ramp-up.
The company also indicated that the crisis has partially eased. “The Force Majeure condition… stands resolved to the extent of the propylene allocation made by the Government of India,” it said, adding that efforts are underway to restore normal production levels swiftly.
Meanwhile, there is no change in the status of Plant-2, which remains unaffected as per earlier disclosures.
Manali Petrochemicals said it will continue to update stock exchanges on further developments as the situation evolves.
