ONGC's OPaL exits Dahej SEZ to tap into local petchem market

Further, this exit from SEZ will improve the competitiveness of OPaL for supplies to be made to the Domestic Tariff Area (DTA)

- OUR CORRESPONDENT

NEW DELHI: ONGC Petro-Additions Ltd (OPaL), a subsidiary of the state-owned Oil and Natural Gas Corporation (ONGC), has relinquished its 'only-for-export' unit status as it aims to tap into the booming local petrochemical market to drive a turnaround.

In a stock exchange filing, ONGC said OPaL has received the final approval for its exit from the Dahej Special Economic Zone (SEZ).

"Accordingly, OPaL shall operate as a Domestic Tariff Area (DTA) unit with effect from March 8, 2025," ONGC said. "Further, this exit from SEZ will improve the competitiveness of OPaL for supplies to be made to the DTA."

This essentially means primarily catering to the domestic Indian market instead of focusing on exports, which is the primary purpose of an SEZ unit. It will now not have to pay customs duty on products sold within India, helping improve margins.