The German chemicals company BASF revealed on Thursday its decision to pause its plan to set-up a USD 4 billion chemical complex in Gujarat due to COVID-led economic uncertainties.

In October 2019, Gautam Adani’s, Adani Group entered into a strategic partnership with UAE's oil giant Abu Dhabi National Oil Company (ADNOC), BASF and Borealis AG with the vision to study the scope of the billion-dollar chemical complex at Mundra in Gujarat.

As a part of the four-party memorandum of understanding (MOU), the partners have completed the feasibility study of the project which involved setting-up a large-scale Propane dehydrogenation plant, a Polypropylene (PP) production unit and an Acrylics value chain complex. In addition, the plan reveals that Adani's Mundra site would have the access to the world-class port and consistent access to renewable energy for operations.

As per the statement revealed by BASF on its website, the partners have mutually agreed to postpone the plan for now, taking into account the economic uncertainties caused by the pandemic and revisit timing for the massive investment. The four partners are convinced about India’s strong market potential and are periodically exploring market conditions to discuss upon any opportunity that may arise in the meantime.