Asom euphoric over GAIL announcement

Guwahati, May 25: Asom is euphoric over the announcement by the State-owned Gas Authority of India Limited (GAIL) to implement the Rs 5,460.61 crore Assam gas cracker project under a joint venture.

The jinxed project has been hanging for past two decades as the successive state governments pushed for the biggest ever industrial investment in the north east region, which has been billed to change the face of upper Asom with downstream industries.

Announcing this yesterday in Mumbai, the GAIL said with the recent approval of the Cabinet Committee on Economic Affairs (CCEA), the project would include an integrated petrochemical complex at Lepetkata in Dibrugarh district of Asom.

The project would be implemented by a joint venture company (JVC) to be promoted by GAIL with 70 per cent equity participation. The remaining 30 per cent equity would be shared equally among Oil India Ltd (OIL), Numaligarh Refineries Ltd (NRL) and the Assam government.

Asom Chief Minister Tarun Gogoi claimed accolades for pushing the project to realisation. The project was initially given to Reliance and was kept in abeyance for a decade. Then OIL also showed interest but eventually it went to GAIL. The project would be completed in 60 months from the date of approval.

The project is expected to give rise to a substantial employment as a result of investments in downstream plastic processing industries and allied activities. It has been estimated that about 500 plastic processing industries were likely to come up in the North-Eastern region, if this project becomes operational.

Spokesman and local MP Sabananda Sonowal is hopeful that GAIL would meet its deadline to end the project. ''I am sure this will help the economy of the region,'' he said as his constituency is going to be benefitted the most. Assam government has agreed to grant exemption from entry tax on capital goods, exemption from works contract tax during construction and sales tax/VAT exemption on feed stock and products for 15 years from the date of commencement of production.

The feedstock for the petrochemical complex is 6.0 MMSCMD(million metric standard cubic meters per day) gas from OIL, Duliajan and 1.35 MMSCMD gas from Oil&Natural Gas Corporation (ONGC) upto March 31, 2012 and 1.00 MMSCMD, thereafter.

The petro complex would also utilize 1,60,000 TPA of petrochemical grade naphtha from NRL. The site has been identified by the Assam government and necessary environmental clearance has been obtained, said Mr Gogoi assuring GAIL that everything would be rovided to them.

The existing LPG plant of the company at Lakwa would be modified to process gas for recovery of ethane and higher hydrocarbon fraction, which would be transported to Lepetkata through a pipeline.

The Assam gas cracker project is proposed as a part of the implementation of Assam accord signed by Government of India on August 15, 1985. However, the work could not be started due to non-availability of sufficient feed stock and other reasons. ''This is now over. That problem is sorted out,'' he said.

UNI