Centre to release Rs 449.45 crore for Gas Cracker Project.
Guwahati/ 1st November’2017 (Prag News Desk): After the Centre approved a capital subsidy of Rs. 908.91 crore for a 15 year period, the authority is planning to release a balance amount.
The Centre is likely to release Rs 449.45 crore as the balance amount of the capital subsidy for the Assam Gas Cracker Project this fiscal. GAIL and Brahmaputra Crackers and Polymers Limited (BPCL) has signed a deal for marketing petrochemical products sold at the plant.
Here, the BPCL has sought a feedstock subsidy of 8, 965 crore over 12.5 years and Rs 3,668 crore revenue subsidy over 10.5 years.
The Department of Petrochemicals has asked BCPL to rework its proposal for subsidy on feedstock as gas price considered for calculating the subsidy is more than the prevailing market price.
The board of BCPL had approved to submit a proposal for enhancement of the capital cost to Rs 9,586.25 crore.
In November 2011, the Cabinet Committee on Economic Affairs (CCEA) revised the cost of the project to Rs 8,920 crore from the original estimated cost of Rs 5,460.61 crore, when the project was approved by the government in April 2006.