Press Releases
[New Delhi, 24th May, 2006]
GAIL to implement Rs. 5460 crore Assam Gas Cracker Project
New Delhi, May 24, 2006. With the recent approval of the Cabinet Committee on Economic Affairs (CCEA), GAIL (India) Limited led Joint Venture Company (JVC) will implement the Rs. 5460.61 crore Assam Gas Cracker Project. The project to set-up an integrated Petrochemical Complex at Lepetkata, District Dibrugarh shall be implemented by a Joint Venture Company (JVC) to be promoted by GAIL with 70% equity participation. The remaining 30% equity will be shared equally among OIL, NRL and Govt. of Assam. The project will be completed in 60 months from the date of approval.
The project is expected to give rise to a substantial employment generation as a result of investments in downstream plastic processing industries and allied activities. It has been estimated that about 500 plastic processing industries are likely to come up in the north-eastern region if this project becomes operational. The Government of Assam has agreed to grant Exemption from Entry tax on capital goods, Exemption from Works Contract Tax during construction and Sales Tax / VAT exemption on feed stock and products for 15 years from the date of commencement of production.
The Feedstock for the Petrochemical Complex is 6.0 MMSCMD gas from Oil India Limited (OIL) Duliajan and 1.35 MMSCMD gas from Oil & Natural Gas Corporation Limited (ONGCL) upto 31/3/2012 and 1.00 MMSCMD thereafter. The Petrochemical Complex shall also utilize 160,000 TPA of petrochemical grade Naphtha from Numaligarh Refinery Limited (NRL).
The petrochemical complex will comprise of a cracker unit, downstream polymer and integrated off-site/utilities plants. The complex has been configured with a capacity of 220,000 tons per annum (TPA) of Ethylene and 60,000 tons per annum of propylene with Natural Gas and Naphtha as feed stock. The site has been identified by the Govt. of Assam and necessary Environmental clearance has been obtained.
The existing LPG plant of GAIL at Lakwa will be modified to process gas for recovery of ethane and higher hydrocarbon fraction which will be transported to Lepetkata through a pipeline.
The Products from the Petrochemical Complex shall be 220,000 Tons per annum (TPA) of HDPE/LLDPE, 60000 TPA of Polypropylene, 55000 TPA of Raw Pyrolysis Gasoline and 12,500 TPA of Fuel oil. The Assam Gas Cracker Project was proposed as a part of the implementation of Assam Accord signed by Government of India on 15th August, 1985. Letter of Intent was issued to Assam Industrial Development Corporation (AIDC) in January 1991. In February 1997, LOI was transferred to Reliance Assam Petrochemicals Limited (RAPL), a joint venture company of Assam Industrial Development Corporation and Reliance Industries Limited. RAPL was granted various concessions by Government of India for implementation of the Gas Cracker Project.
The work could not be started due to non-availability of sufficient feed stock and other reasons
Ministry of Finance decided on 20.2.2003 that GAIL would examine the feasibility of taking up the Assam Gas Cracker Project on its own. GAIL would also indicate the assistance required from other PSU’s and Government of India for setting up the project. GAIL engaged services of Engineers India Limited (EIL) to workout the project viability.
A Pre-Feasibility Report (PFR) for the project was prepared considering an integrated Petrochemical Complex. Thereafter a Detailed Feasibility Report (DFR) was prepared by GAIL & EIL. The financial appraisal of the project has been carried out by IFCI Ltd.