Project Approval

The Assam Gas Cracker Project has been approved by Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 18th April, 2006.

PROJECT BRIEF

Assam Gas Cracker project is divided in three units

o At Duliajan:
- 6 MMSCMD Gas compressor
- 50 km 20" two way pipeline up to Lepetakata for Lean and Rich Gas

o At Lakwa:
- Gas sweetening unit & modification of LPG Lakwa plant for producing C2+ component
- 45 Km line to transport C2+ component from Lakwa to Lepetakata

o At Lepetkata:
- 6 MMSCMD Gas sweetening unit
- C2+ fractionation plant
- Cracker Plant to Crack C2+ and Naphtha
- Downstream plant to produce LLDPE/HDPE & Polypropylene

SALIENT FEATURES OF PROJECT

>Project Partners : GAIL : 70%, NRL : 10%, OIL : 10% and Govt. of Assam : 10%
> Project Schedule : 60 months
> Land Required for Plant : 1108 Acres (Government Land : 99 Acres, Pvt. Land : 1009 Acres)
> Land Required for Township : 180 Acres

APPROVED FINANCIAL STRUCTURE OF PROJECT

> Project Cost : Rs. 5460 Crores
> Debt Equity ratio : 2 : 1
> Capital Subsidy : Rs. 2138 Crores
> Recurring Feedstock Subsidy : Rs. 908 Crores
Exemptions granted :
From the Government of Assam :
> Entry Tax on Capital Goods and
> Sales Tax/VAT on Feed & Product for 15 years
From Central Government :
> Excise Duty for 10 years and
> Income Tax for 10 years