GAIL establishes JV to implement Assam gas cracker project

25-May-06

The cabinet committee on economic affairs (CCEA) has granted approval to GAIL India Ltd., leading the state owned company to announce that a joint venture company (JVC) will implement the Rs5,460.6 crore Assam Gas Cracker Project at Lepetkata, in Dibrugath. GAIL will have 70% equity participation in the joint venture company, and the remaining 30% will be shared equally among OIL, NRL and the state government of Assam. 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 tpa of ethylene and 60,000 tpa of propylene, using natural gas and naphtha as feedstock. Capacity includes 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. The government of Assam has identified the site and necessary environmental clearance has been obtained. The project will be completed in 60 months from the date of approval. Feedstock for the 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 Ltd (NRL). Almost 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.