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Cabinet approves administrative control transfer of BCPL

28
Dec '19

Pic: Shutterstock

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the transfer of administrative control of Brahmaputra Cracker and Polymer Limited (BCPL), the Central Public Sector Undertaking implementing the Assam Gas Cracker Project (AGCP) from Department of Chemicals & Petrochemicals to Ministry of Petroleum & Natural Gas.

The CCEA has also approved the feedstock subsidy to BCPL for 15 years of plant operation to maintain minimum Internal Rate of Return (IRR) of 10 per cent (post tax). To bring the IRR to 10 per cent, BCPL has estimated feedstock subsidy of approximately ₹4,600 crore for the project for 15 years of plant operation. BCPL will submit the proposal on yearly basis from the next financial year onwards and the administrative Ministry / Department will devise a mechanism to examine the proposal in consultation with the Ministry of Finance.

The Ministry of Petroleum & Natural Gas will make firm arrangements through concerned Public Sector Undertakings for supply of committed quantity and quality of feedstock to the project as envisaged in the earlier CCEA approval of 2006.

BCPL has set up a petrochemical complex at Lepetkata. The complex is spread over 3000 bigha of land at Lepetkata, and is situated at approximately 15 kilometres away from the Tea City Dibrugarh, Assam.

The project is seen as a part of the implementation of Assam accord, and would give impetus to the development of north-eastern region of the country and will improve the socio-economic conditions of the people of Assam through increased employment.

BCPL's polypropylene plant is based on Gas Phase Lummus Novolen Technology GmbH (NTH), Germany. It is designed to produce 60,000 TPA of various grades of polypropylene. The product range of the PP plant covers various grades of homopolymer and random copolymer manufactured by gas phase polymerisation in one vertically stirred bed reactor.

Fibre2Fashion News Desk (RKS)

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