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BCPL project progress on schedule

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Brahmaputra Cracker and Polymer Limited (BCPL) (Assam Gas Cracker Project) today made a presentation to the Honourable Chief Minister of Assam, Shri Tarun Gogoi, Shri B.K. Handique, Hon’ble Union Minister of State for Chemicals and Fertilizers, State Minister for Commerce and Industries, Shri Pradyut Bordoloi and Chief Secretary Shri Prafulla Sarmah. Dr. U.D. Choubey, Chairman, BCPL and CMD GAIL (India) Ltd., Shri A.K. Puruwaha, Director Business Development , GAIL and BCPL, and other senior officials from Central government, Govt. of Assam and PSUs were also present in the meeting. Speaking on the occasion, Dr. Choubey said that GAIL has taken all actions required to ensure that the project would be completed as per the schedule. Shri Tarun Gogoi and Shri B.K. Handique expressed their satisfaction and complimented GAIL on the progress made so far.

In the presentation, Shri J.K. Singh Teotia, Chief Operating Officer (COO), BCPL detailed the milestones already achieved which include the award of Licensorship for C2+ extraction units, Gas Sweetening units, Gas De-hydration units, and basic design & engineering which has already been completed. Detailed design & engineering is in progress. The Licensors for all the remaining process units have been selected. The Licensor for LLDPE/HDPE swing unit is INEOS Technology, UK and that for Polypropylene unit is Lummus Technologies, Germany. The Licensor for Cracker unit is targeted to be awarded by September 19, 2008.

GAIL (India) Limited led Joint Venture Company (JVC), Brahmaputra Cracker and Polymer Limited (BCPL) is implementing the Rs. 5460.61 crore Assam Gas Cracker Project to set-up an integrated Petrochemical Complex at Lepetkata, District Dibrugarh. The Joint Venture Company (JVC) promoted by GAIL with 70% equity participation and the remaining 30% equity is shared equally among OIL, NRL and Govt. of Assam. The project will be completed in 60 months from 9th April 2007, the date of Foundation stone laying at Lepetkata by Hon’ble Prime Minister, Dr. Manmohan Singh.

While the jobs for Construction Power Works and Railway siding study work have been awarded, the jobs for Administrative Block, Site Office, Site Grading-I, Plant and Non-Plant buildings (Control Room, sub station, Gate house, Watch tower, Fire station) is targeted to be completed by September 2008 end.

Major portion of land for the plant has been acquired and necessary Environmental clearances both from state and centre have been obtained. Gas Supply agreements with Oil India Limited and ONGC and the term sheet agreement for Naphtha with NRL are in place, thereby making the feedstock secured for the plant.

BCPL has awarded Project Management Consultancy job to India’s premier engineering Public Sector Company Engineers India Limited (EIL). The work for topographical survey, geotechnical survey and ODC transport study has been completed. Process Design basis has been completed for all units where EIL is the Licensor. The sources for the Borrow earth required for site grading & raising the plant level by 2 Metres to 3 Metres have been finalized with the concerned authorities. Route survey for Lakwa – Lepetkata Pipeline has been completed.

The work of Barbed wire Fencing commenced in May 2008 and is being followed up vigorously on daily basis and is targeted for completion by October 2008 as scheduled. Casting of about 99% pillars is completed and about 55% have already been erected.

Several physical activities involving big movement of men / machinery / material shall be witnessed in plant area in October / November 2008.

Total land measuring 2978 Bighas has been taken-over by BCPL at Lepetkata. District Administration has assured for making 100% land encroachment free at the earliest. Also the land measuring 400 Bighas & 70 Bighas for BCPL & CISF townships respectively has been taken over by BCPL. 45 Bighas of land at Duliajan required for setting up the Compressor station has been identified and 4(1) notification published on July 23, 2008. Local Administration Dibrugarh has assured for Land handing-over this land by November 2008.

Three locations have been finalized for Site grading & Borrow earth - 1500 Bighas of Government land near river Buridihing, 1000 Bighas Government land near Madhupur and along Brahmaputra River bed upstream of Bogibeel Bridge. Necessary clearances from all the concerned authorities viz. Administration, DFO, Water Resource Authority, PWD, etc has been obtained.

In the next 2 to 3 months, various activities targeted to be completed include completion of Detail engineering & Process packages for units under EIL, Finalization of agreements & Basic Design Packages with the Licensors for Ethylene Cracker, Polyethylene & Polypropylene units, Award for balance enabling works, appointment of Town Planner & Architect for development of BCPL & CISF Townships, Execution of enabling works at site, etc.

The project is expected to give rise to direct / indirect employment generation as a result of investments in downstream plastic processing industries and allied activities. It has been estimated that upto 500 plastic processing industries can come up in the north-eastern region after this project becomes operational. The Government of Assam 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 petrochemical complex will comprise of Ethylene cracker unit, downstream polymer and integrated off-site/utilities plants. The complex has been configured with a capacity of 220,000 tons per annum (TPA) of Ethylene and 60,000 tons per annum of propylene with Natural Gas and Naphtha as feed stock.

The Petrochemical Complex will produce 220,000 Tons per annum (TPA) of HDPE/LLDPE, 60000 TPA of Polypropylene, 55000 TPA of Raw Pyrolysis Gasoline and 12,500 TPA of Fuel oil.

OIL and NRL shall supply 6 MMSCMD of natural gas and 160,000 TPA of naphtha respectively as feedstock to the complex. The balance feedstock requirement of 1.3 MMSCMD of gas up to 2012 and 1 MMSCMD thereafter is considered from ONGC.

Existing C2/C3 recovery plant of GAIL at Lakwa shall be modified to C2 plus liquids recovery plant. C2 plus liquids shall be brought from Lakwa to Lepetkata plant through pipeline. EIL, the process licensor is in the process of finalization of Detailed Engineering Package. Gas Cracker Plant at Lepetkata shall be getting C2 plus liquids from GAIL Plant at Lakwa, natural gas from OIL at Duliajan and Naphtha from NRL as feedstock for petrochemical plant at Lepetkata.

BCPL shall establish gas dehydration and compressor facilities at Duliajan for carrying 6 MMSCMD of natural gas from OIL, Duliajan to Lepetkata plant where C2 plus liquids shall be recovered and the lean gas shall be sent back to OIL, Duliajan for further distribution to gas customers. Twin pipelines shall be laid between Duliajan & Lepetkata. BCPL is at advance stage of acquiring land at Duliajan.

The project being of national importance is being executed with all out efforts for completion within the schedule of 60 months from the date of foundation stone laying ceremony by Hon’ble Prime Minister Dr. Manmohan Singh on 9th April 2007 at Lepetkata site.

The Assam Gas Cracker Project was proposed as a part of the implementation of Assam Accord signed by Government of India on 15th August, 1985. Letter of Intent was issued to Assam Industrial Development Corporation (AIDC) in January 1991. In February 1997, LOI was transferred to Reliance Assam Petrochemicals Limited (RAPL), a joint venture company of Assam Industrial Development Corporation and Reliance Industries Limited. RAPL was granted various concessions by Government of India for implementation of the Gas Cracker Project.

The work could not be started due to non-availability of sufficient feed stock and other reasons.

Ministry of Finance decided on 20.2.2003 that GAIL would examine the feasibility of taking up the Assam Gas Cracker Project on its own. GAIL would also indicate the assistance required from other PSUs and Government of India for setting up the project. GAIL engaged services of Engineers India Limited (EIL) to workout the project viability.

A Pre-Feasibility Report (PFR) for the project was prepared considering an integrated Petrochemical Complex. Thereafter a Detailed Feasibility Report (DFR) was prepared by GAIL & EIL. The financial appraisal of the project has been carried out by IFCI Ltd.

CCEA approved the project on 18.4.2006. Project Appraisal Committee (PAC) of GAIL Board has given recommendation for Board approval on 9.6.2006. Board has asked for firming up of feedstock supply agreements with suppliers.

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