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| BCPL Petrochemical Project achieves financial closure |
| Announcement / Corporate Oct 01, 2009, 19:27 IST |
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The financial closure of 280,000 TPA petrochemical plant being set up at Lepetkata in District Dibrugarh, Assam at a cost of Rs. 5461 crore by Brahmaputra Cracker and Polymer Limited (BCPL) has been achieved. The announcement was made by Shri B. C. Tripathi, Chairman, BCPL and Chairman and Managing Director, GAIL here today.
Brahmaputra Cracker and Polymer Limited was incorporated on January 8, 2007 as a Joint venture company having GAIL (India) Limited, Oil India Limited, Numaligarh Refinery Limited and Government of Assam with GAIL having 70% stake and the other partners sharing 10% each respectively. The funding of this project has been envisaged with a Debt: Equity ratio of 2:1.
Of the total project cost of Rs. 5460 crore, Rs.2138 crore has been given as capital subsidy and Rs. 909 crore has been given as feedstock subsidy by Government of India. Of the balance Rs. 3124 crore, the equity component is Rs. 1041 crore. The debt component of Rs. 2083 crore has been tied up. Of this, loan of Rs. 327 crore has been tied-up with OIDB in September 2009.
Balance debt component of Rs. 1756 crore has been tied up today. The debt has been syndicated by a consortium of Punjab National Bank (Leader), Almondz Global Securities Limited and SPA Merchant Bankers Limited. The banks participating in the consortium are Punjab National Bank, Bank of Baroda, Bank of India, Andhra Bank, Allahabad Bank, Corporation Bank, Jammu & Kashmir Bank and State Bank of Travancore.
The request for issuance of necessary exemption notifications for VAT, Works Contract Tax and Entry Tax by Government of Assam is under process and exemption notifications are likely to be issued soon.
Further, it is worth mentioning that the Project has received consistent support of Government of Assam, Ministry of Chemicals & Fertilizers, Government of India, GAIL (India) Limited and other promoters by way of allotment of requisite Land, timely grant of capital subsidy, infusion of equity (even without waiting for availment of debt) and deployment of highly skilled & experienced manpower etc.
BCPL has made a total financial commitment of around Rs. 1750 crore for the project and will spend Rs. 896 crore on project activities during FY 2009-10. BCPL has so far. Final Basic design and Engineering packages for all units have been received and accordingly material requisition and ordering of equipment are in progress. Site delivery will progressively start from May 2010 and is likely to be completed by September, 2011. Similarly, orders for critical works are being placed progressively from November 2009 to May 2010.
The Company has achieved several significant milestones including completion of barbed wire fencing, topographical and geotechnical surveys, pipeline and hydrological route survey, infrastructure for construction power and construction of site office. Various site activities such as administrative block building, site grading, plant building and non-plant building works, product warehouse, piling works and boundary wall for Township.
Requisite land has been acquired with the help of Government of Assam. Engineers India Limited have been appointed as EPMC (Engineering and Project Management Consultant) for the project. Licensors Lummus Technologies Inc. USA, Lummus Novolen GmbH Germany and Ineos Europe Ltd UK have been selected for giving technical knowhow for the project.
BCPL will endeavour to create downstream market for the products with the support of the Government of Assam. BCPL will give a special emphasis to sell the product in North & North-East part of the country. The per capita consumption of Polymers in Northeast region is currently negligible as compared to states like Gujarat and Maharashtra etc. Once BCPL begins commercial operations, awareness is expected to be created in the North-East region and as a result, per capita consumption of polymers is expected to increase in the region.
The project is scheduled for commissioning in April 2012. Wherever possible various activities of the Project have been compressed so as to achieve mechanical completion as well as commissioning of the plant as originally envisaged. The progress of this prestigious Project is being monitored at the highest level, considering its direct and indirect socio-economic benefits which would generate opportunities for people in Assam and North east region.
GAIL (India) Limited led Joint Venture Company (JVC), Brahmaputra Cracker and Polymer Limited (BCPL) is implementing the Rs. 5460 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 Government of Assam.
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 1.35 MMSCMD of gas up to 2012 and 1 MMSCMD thereafter is considered from ONGC.
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.
Existing C3/C4 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. 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.
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