Even as the Assam gas cracker project of Reliance Assam Petrochemicals Ltd (RAPL) has been hanging fire for more than 17 years, the petroleum ministry has asked Gas Authority of India Ltd (Gail) to conduct the feasibility study of a similar project in the state.
The ministry has told Gail that the feasibility study should be based on the same parameters that exist for the Reliance Assam Petrochemicals project.
The Reliance Assam Petrochemicals project is expected to have a capacity to manufacture 3,00,000 tonnes of ethylene per annum.
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Gail has been told that the study should consider the following concessions that have been extended to Reliance Assam Petrochemicals and might be applicable to it as well:
* Commitment of natural gas for production of 3,00,000 tonnes per annum of ethylene
* Gas price of Rs 600 per 1,000 standard cubic metres for 15 years
* Additional gas, if available, at normal North-East prices
* Naphtha allocation from north-eastern refineries on priority basis
* Rs 377 crore subsidy for project implementation
* Rs 72 crore infrastructure subsidy
Petroleum ministry sources say that Gail has already started work on the feasibility study which is expected to be completed before the end of the current fiscal.
Meanwhile, the issue of gas supply continue to delay the implementation of the Rs 3,600-crore gas cracker project of Reliance Assam Petrochemicals. The project is located at Tengakhat in Dibrugarh district.