Numaligarh Refinery Ltd., supplier of naphtha for GAILs' proposed Assam gas cracker project could be asked to supply the material at a fixed price. Numaligarh is expected to provide naphtha to the petrochemical complex at Rs 15,000 per ton, whereas, currently, it sells the feedstock to NTPC and Haldia Petrochemicals at Rs 33,000 per ton. Numaligarh will incur heavy losses if it sells naphtha at the earlier price. Though a review of prices has been favoured by the ministry, Gail as the main promoter, prefers a fixed price for the feedstock, as a change in naphtha prices, will change the estimates of the Rs 5,460 crore petrochemicals project. The petroleum ministry has asked the ministry of chemicals and fertilisers, which is steering the project, to rework naphtha prices such that the central government bears the subsidy.
The Assam petrochemicals complex, to be set up at Lepetkata in Dibrugarh district, will be implemented by a joint venture company to be promoted by Gail with 70% equity participation. The remaining 30% equity will be shared equally among OIL, NRL and the Assam government. The issue of the naphtha prices has delayed the agreement for the joint venture.
04-Sep-06 
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