Chemicals ministry to cede control of Assam Gas Cracker Project to petroleum ministry
24 Dec 2019
The ministry of chemicals and fertilisers will transfer control of Brahmaputra Cracker and Polymer Limited (BCPL), the central public sector undertaking implementing the Assam Gas Cracker Project (AGCP) to the ministry of petroleum and natural gas.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi today approved the transfer of administrative control of Brahmaputra Cracker and Polymer Limited from the Department of Chemicals and Petrochemicals to the ministry of petroleum and natural gas.
The CCEA also approved the extension of feedstock subsidy to BCPL for 15 years of plant operation to maintain minimum Internal rate of return (IRR) of 10 per cent (post tax).
To bring the IRR to 10 per cent, BCPL has estimated feedstock subsidy of approximately Rs4,600 crore for the project for 15 years of plant operation. BCPL will submit the proposal on yearly basis from the next financial year onwards and the administrative ministry / department will devise a mechanism to examine the proposal in consultation with the finance ministry.
Ministry of petroleum and natural gas will make firm arrangements through concerned PSUs for supply of committed quantity and quality of feedstock to the project as envisaged in the earlier CCEA approval of 2006.
The project is seen as a part of the implementation of Assam accord, and would give impetus to the development of north-eastern region of the country and will improve the socio economic conditions of the people of Assam through increased employment.