GAIL completes funding for NE petrochem project

GAIL completes funding for NE petrochem project

New Delhi: GAIL (India) Ltd on Thursday completed financing of a petrochemical complex based in north east, a major milestone for a project that was planned more than two decades ago, its chairman B. C. Thripathi said.

After facing repeated delays since 1985 due to various reasons including lack of feedstock, India in 2007 formed a new firm—Brahmaputra Cracker and Polymer Ltd (BCPL)—to execute the Rs54.61-billion project in Assam.

GAIL has 70% stake in BCPL while Oil India Ltd, Numaligarh Refinery Ltd and Assam government together own the rest.

The 280,000-tonne-a-year project would be commissioned by April 2012, Tripathi said.

A debt of Rs17.56 billion has been tied up from a consortium of bankers led by state-run Punjab National Bank at an annual floating rate of 11%, he said.

The remaining debt component of Rs3.27 billion has been raised from the Oil Industry Development Board and the government has given Rs9.09 billion as feedstock subsidy, he said.

He said Oil India will supply 6 million cubic metres a day (mmscmd) of gas for the project, while Numaligarh Refinery will supply 160,000 tonnes of naphtha as feedstock for the project.

“The balance feedstock requirement of 1.3 MMSCMD of gas up to 2012 and 1 MMSCMD thereafter is considered from ONGC (Oil and Natural Gas Corp)," he said.

The petrochemical complex will comprise an ethylene cracker unit, downstream polymer and integrated off-site utilities plants.