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Andhra Petrochemicals Ltd on Tuesday said it suspended operations at its Visakhapatnam plant after Hindustan Petroleum Corporation Ltd (HPCL) halted propylene supply due to the ongoing conflict involving Iran, the US and Israel.
Propylene is a key raw material, serving as the primary feedstock required for plant operations.
“This is to inform that our Company’s Plant at Visakhapatnam has suspended its Plant Operations effective from today, i.e., from 17.3.2026, due to the ongoing War between Iran and USA & Israel, M/s Hindustan Petroleum Corporation Ltd (HPCL) stopped the supply of the major raw material, i.e., Propylene,” the company said in an exchange filing.
The company added that operations will resume once HPCL restores propylene supply.
The development highlights the impact of geopolitical tensions in West Asia on India’s petrochemical and downstream manufacturing supply chains, particularly where production depends on refinery-linked feedstock supplies.
Industries such as steel, ceramics, glass, power, and chemicals bear the brunt as gas allocations to non-essential sectors were slashed 10-30 per cent.
Confirmed shutdowns during the past week include Borosil’s borosilicate glass furnace in Chomu near Jaipur, Rajasthan, halted by LPG restrictions; Bengaluru’s Yelahanka Gas Power Plant after GAIL cut supplies; nearly 100 ceramic units in Morbi, Gujarat, from propane shortages; and Hindustan Organic Chemicals Limited (HOCL)’s Phenol plant in Kochi, Kerala, due to BPCL’s complete LPG supply.
Andhra Petrochemicals Ltd shares were up 1.57 per cent on Tuesday, trading at ₹38.74 apiece at 01:02 pm.
