Assam gas cracker project cost to rise
PM News Bureau
The cost of Assam Gas Cracker project is likely to rise from Rs 3,700 crore to Rs 5,139 crore. Also, in a pre-Public Investment Board meeting a one-time capital subsidy of Rs 2,000 crore has been approved. The subsidy will be extended towards gas supplies only and not for naphtha. With this, the way is cleared for GAIL to take over the project. A review meeting will be held at the Prime Minister's Office by the end of this month.
The much-delayed project will see the exit of Reliance Industries. GAIL will have a 60 per cent share, and NRL, Oil India Ltd., Indian Oil Corporation and Assam Industrial Development Corporation will acquire 10 per cent equity each. Earlier, the government was planning to rope in ONGC, however, the latter showed no keen interest in the project. As a result its share was offered to NRL which will also supply the 160,000 metric ton naphtha.
(21 Feb 2005)