Brahmaputra Cracker to invest Rs 8.96 bn in new projects
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.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 comparedto 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.