New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved the revised cost estimates of the Assam Gas Cracker Project to the tune of Rs 8,920 crore.
The project would be funded by capital subsidy of Rs 4,690 crore and debt and equity for Rs 2961 crore and Rs 1269 crore respectively.
In case the planned loans do not materialise, the same would be picked up as additional equity by the promoters, an official statement said here.
The revised capital subsidy will be sought by the Department of Chemicals and Petrochemicals from the Ministry of Finance/Planning Commission in 2011-12 and 2012-13 by way of additional budgetary support.
The project schedule has also been revised with mechanical completion by July, 2013 and commissioning by December, 2013.
The Assam Gas Cracker Project was initiated in pursuance of the Memorandum of Settlement signed between Central Government and All Assam Students Union (AASU) and All Assam Gana Parishad (AAGP) on August 15, 1985.
CCEA, in its meeting held on April 18, 2006, approved the setting up of the Assam Gas Cracker Project at a project cost of Rs 5,460.61 crores.
However, due to various reasons such as time escalation, increase in infrastructural requirements & utilities, increase in construction cost, frequent bandhs, inadequate availability of skilled manpower at the site and prolonged monsoon, the project has witnessed time and cost overruns.
The project is expected to give rise to a substantial employment generation, as a result of investments in downstream plastic processing industries and allied activities.
The project is considered to be of crucial significance for the state of Assam and North-Eastern region.
Currenty, the project is in its fifth year of execution.
Requisite land for the complex has been acquired and necessary land development is also in the completion stage.
The project would be funded by capital subsidy of Rs 4,690 crore and debt and equity for Rs 2961 crore and Rs 1269 crore respectively.
In case the planned loans do not materialise, the same would be picked up as additional equity by the promoters, an official statement said here.
The revised capital subsidy will be sought by the Department of Chemicals and Petrochemicals from the Ministry of Finance/Planning Commission in 2011-12 and 2012-13 by way of additional budgetary support.
The project schedule has also been revised with mechanical completion by July, 2013 and commissioning by December, 2013.
The Assam Gas Cracker Project was initiated in pursuance of the Memorandum of Settlement signed between Central Government and All Assam Students Union (AASU) and All Assam Gana Parishad (AAGP) on August 15, 1985.
CCEA, in its meeting held on April 18, 2006, approved the setting up of the Assam Gas Cracker Project at a project cost of Rs 5,460.61 crores.
However, due to various reasons such as time escalation, increase in infrastructural requirements & utilities, increase in construction cost, frequent bandhs, inadequate availability of skilled manpower at the site and prolonged monsoon, the project has witnessed time and cost overruns.
The project is expected to give rise to a substantial employment generation, as a result of investments in downstream plastic processing industries and allied activities.
The project is considered to be of crucial significance for the state of Assam and North-Eastern region.
Currenty, the project is in its fifth year of execution.
Requisite land for the complex has been acquired and necessary land development is also in the completion stage.
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