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| BCPL to spend Rs. 896 crore during FY 2009-10 on project activities | | BCPL Financial closure by next month |
| Announcement / Corporate Sep 09, 2009, 20:32 IST |
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Brahmaputra Cracker and Polymer Limited (BCPL) will spend Rs. 896 crore on project activities during FY 2009-10. This was shared by Mr. B. C. Tripathi, Chairman BCPL and Chairman and Managing Director, GAIL (India) Ltd. while addressing the shareholders of the Company during its second Annual General Meeting here today. Orders for critical equipment are being progressively placed from end August 2009 to January 2010.
Shri Tripathi also said that the financial closure for the project would be achieved by next month. The Job of Lead arranger for financial closure has already been awarded. GAIL will make an equity contribution to the extent of Rs. 188 crore. Along with the capital subsidy of around Rs. 316 crore; OIDB loan of Rs. 267 crore and current balance of around Rs. 124 crore, this would be sufficient for the requirements.
Over Dimension Consignment is a major issue in taking the project forward. Logistical arrangements for the project are difficult in the northeast region. This is particularly true of heavy engineering equipment as well as requirement of qualified and skilled manpower to implement the project. At present the manpower for the project is being met through drawing from the parent company GAIL (India) Ltd. Reviews of the project implementation are being taken in a regular manner at the highest level in the Company i.e. by Chairman BCPL and these constraints are being dealt with effectively to expedite the project. Shri B.C.Tripathi, Chairman, BCPL took stock of the current status of the project activities and advised the officials to keep a close monitoring and review of the critical project areas.
BCPL has so far made a total financial commitment of around Rs. 1720 crore for the project. Final Basic design and Engineering packages for all units have been received and accordingly material requisition and ordering of equipment are in progress. The Company has placed orders of over Rs. 990 crore and tendering for other items to the tune of Rs. 1400 crore is in process. 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
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 1.3 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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