the recent approval of the cabinet committee on economic
affairs (CCEA), the GAIL India Ltd has announced that
led joint venture company (JVC) will implement the Rs5,460.6-crore
Assam Gas Cracker Project.
be set-up at an integrated petrochemical complex at Lepetkata,
in Dibrugath will be implemented by a joint venture company,
with GAIL having a 70-per cent equity participation. The
remaining 30 per cent equity will be shared equally among
OIL, NRL and the state government of Assam. The project
will be completed in 60 months from the date of approval.
project is expected to create local employment as a result
of investments in downstream plastic processing industries
and allied ventures. According to estimates about 500
plastic processing units 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 exemptions
on feedstock and products for 15 years from the date of
commencement of production.
feedstock for the petrochemical complex is 6.0 MMSCMD
gas from Oil India Ltd, Duliajan and 1.35 MMSCMD gas from
ONGCL till March 31, 2012, and 1.00 MMSCMD thereafter.
The petrochemical complex shall also utilise 160,000 TPA
of petrochemical grade naphtha from Numaligarh Refinery
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 prop and natural gas and naphtha as
feedstock. The government of Assam has identified the
site and necessary environmental clearance has been obtained.
existing GAIL LPG plant 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.
products from the petrochemical complex will be 220,000
TPA of HDPE / LLDPE, 60,000 TPA of polypropylene, 55,000
TPA of raw pyrolysis gasoline and 12,500 TPA of fuel oil.
Assam Gas Cracker Project was proposed as a part of the
implementation of Assam Accord signed by centre on August
15, 1985. Subsequently, a letter of intent was issued
to Assam Industrial Development Corporation (AIDC) in
January 1991. In February 1997, the letter of intent was
transferred to Reliance Assam Petrochemicals Ltd (RAPL),
a joint venture company of Assam Industrial Development
Corporation and Reliance industries Ltd, for which RAPL
was granted various concessions by central government
for implementing the gas cracker project.
the work could not be started due to non-availability
of sufficient feedstock and other reasons.
February 20, 2003, the ministry of finance decided that
the company would examine the feasibility of taking up
the Assam Gas Cracker Project on its own. The company
would also indicate the assistance required from other
PSU''s and government of India for setting up the project.
The company engaged the services of Engineers India Ltd
(EIL) to workout the project viability.
pre-feasibility report (PFR) for the project was prepared
considering an integrated petrochemical complex. Thereafter,
a detailed feasibility report (DFR) was prepared by GAIL
and EIL. The financial appraisal of the project has been
carried out by IFCI Ltd.