The Hindu Business Line : GAIL-led venture to implement Assam gas project

GAIL would promote the JVC for the integrated petrochemical complex at Lepetkata, District Dibrugarh with 70 per cent equity participation, the company said.

The remaining 30 per cent equity will be shared equally among Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL) and Assam Government.

The project will be completed in 60 months from the date of approval.

Employment opportunities

According to a statement issued by GAIL, the project is expected to help in substantial employment generation as a result of investments in downstream plastic processing industries and allied activities. It has been estimated that about 500 plastic processing industries are likely to come up in the North-Eastern region if this project becomes operational.

Further, the State Government 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 feedstock for the petrochemical complex is 6 MMSCMD gas from OIL, Duliajan, and 1.35 MMSCMD gas from ONGC up to March 31, 2012 and 1.00 MMSCMD thereafter. The petrochemical complex would also utilise 1,60,000 tonnes per annum (TPA) of petrochemical grade naphtha from NRL, the statement said.

The petrochemical complex would comprise a cracker unit, downstream polymer and integrated off-site/utilities plants. The complex has been configured with a capacity of 2,20,000 TPA of ethylene and 60,000 tonnes per annum of propylene with natural gas and naphtha as feedstock.

Besides, the existing LPG plant of GAIL at Lakwa would be modified to process gas for recovery of ethane and higher hydrocarbon fraction, which would be transported to Lepetkata through a pipeline.

The products from the complex would be 2,20,000 TPA of HDPE/LLDPE, 60,000 TPA of polypropylene, 55,000 TPA of raw pyrolysis gasoline and 12,500 TPA of fuel oil.

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