New Delhi: State-run gas utility GAIL India has asked Assam government to allocate the remaining 462 acres of land for the Assam gas cracker project and exempt the Rs5,460 crore project from works contract tax.
U.D. Choubey, chairman and managing director of GAIL and chairman of Brahmaputra Cracker and Polymer Ltd, met Assam chief minister Tarun Gogoi this week to discuss the progress of the project, company officials said.
Of the total 1,004 acres of land needed for the project, only 542 acres has so far been given to BCPL, the company promoted by GAIL for implementing the project.
Choubey also asked Gogoi to extend exemption from works contract tax during construction and plant operation as the feasibility of the project was worked out on an assurance from the state government to this effect.
The project cost would increase by Rs53.2 crore in case this exemption is not extended by the state government.
Prime Minister Manmohan Singh had last month laid the foundation stone of the project at Lepetkata. The project is expected to be completed in five years.
The gas cracker plant will produce 280,000 tons of polymers per year. The feedstock for the petrochemical complex is 6 million standard cubic meters per day (mmscmd) of gas from Oil India Ltd and 1.35 mmscmd from ONGC till 31 March, 2012 and 1 mmscmd thereafter.
It will also use 160,000 tonnes of petrochemical grade naphtha from Numaligarh Refinery Ltd.