Assam Petrochemicals Limited set for expansion, to invest 1028 crores

03-Jul-13

Assam Petrochemicals Limited (APL) is poised for large-scale expansion in the production of methanol and acetic acid, as per Times Of India. Plans are underway to produce 500 tons of methanol and 200 tons of acetic acid per day, with a capital outlay of Rs 1,028 crore. The Namrup-based PSU, with a net worth of Rs 70 crore, signed financial agreements with 10 banks, the Oil India Limited and other equity holders for the new project. Of the total Rs 1,028 crore outlay, equity capital to the tune of Rs 393 crore will be invested by OIL, the Assam government and the Assam Gas Company Limited. The remaining Rs 635 crore will be debt capital from banks. The State Bank of India will be the lead bank to financethe project. Growing demand for methanol and acetic acid in the domestic market prompted the company to increase its investment. "About 60% of the domestic demand is met from imports. While the demand for methanol is growing at the rate of 6% annually, the demand for acetic acid is growing at the rate of four per cent annually. Since there is a demand already, there will be no problem in marketing," said APL managing director, Ratul Bordoloi.