February 21, 2002

'42'

ASSAM GAS CRACKER PROJECT REVIEWED

PENDING ISSUES TO BE SORTED OUT WITHIN FOUR MONTHS

    The Minister for Chemicals and Fertilizers, Shri S.S.Dhindsa reviewed the progress of the proposed Assam Gas Cracker project here today. There are two major issues to be settled in the implementation of the project-Availability of land for setting up of project and Availability of feedstock i.e. associated gas for producing Ethylene to the tune of 2 lakh tonnes per annum. The meeting was attended by the Minister of Petroleum and Natural Gas, Shri Ram Naik, Minister for Disinvestment and Development of North-East, Shri Arun Shourie and the Chief Minister of Assam, Shri Tarun Gogoi alongwith senior officials of the Ministry of Chemicals and Fertilizers.

    As far as the availability of feedstock is concerned, it was agreed that this crucial issue will be sorted out within the next four months with the intervention of the Department of Chemicals and Petrochemicals and the Ministry of Petroleum, if necessary. Regarding the land for the project, the chief minister of Assam assured that it will be made available anytime it is required. The Committee headed by Secretary, Chemicals and Petrochemicals, set up in the ministry of Chemicals and Fertilizers will streamline the monitoring of the project.

    The Assam Gas Cracker Project was proposed as a part of the implementation of the Assam accord signed on 15th August, 1985 which provided for the speedy all round development of Assam. A Letter of Intent was issued in favour of Assam Industrial Development Corporation (AIDC), in January 1991 to set up a Petrochemical Gas Cracker complex of 3 lakh tonnes per annum Ethylene capacity in the joint sector. An MOU was signed between the Government of Assam and Reliance Industries Ltd. (RIL) in May, 1994 for setting up of the project and Reliance Assam Petrochemicals Limited (RAPL) was formed which is now implementing the project.