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Assam petrochemicals to invest Rs 1028 crore in Methanol and Acetic Acid Plant in Assam

The Economic Times:  July, 2013

Guwahati: Public sector unit, Assam petrochemicals Limited (APL) will invest close to Rs 1028 Crore for its new 500 tones per day (TPD) Methanol Plant and 200 TPD Acetic Acid Plant.

APL is the only state public sector enterprise of Assam to be listed with the Bombay and Guwahati stock exchange. Both the projects will come up in Namrup in Assam with 5 MW captive power plant.

Ratul Bordoloi, Managing Director of APL on Monday said that equity capital amounting to Rs 393 Crore will be invested by Oil India Limited (OIL), Government of Assam and Assam Gas Company Limited (AGCL).

Assam government will provide Rs 148 Crore while AGCL will give Rs 25 Crore. Oil has picked up 49 percent stake in the project. The remaining amount of Rs 635 Crore would be debt capital from various banks lead by the State Bank of India. The debt agreement was signed on Monday for raising debt from a consortium of 10 banks.

Bordoloi added the project will get environment clearance very soon. Requisite data is submitted to the Union Ministry of Environment and Forest, (MoEF). Technology provider for both the projects are finalized .

The company is presently producing 100 TPD methanol and 100 TPD Formalin, which is sold in Eastern and Northern India besides being exported to Nepal, Bhutan and Bangladesh. The company is expecting to commission this project after 39 months of the commencement of the construction works.

Bordoloi added that India is presently importing at least 60 percent of its methanol requirement and similarly it is importing 60 percent of acetic acid requirement. "The demand for methanol is growing at the rate of 6 percent annually and for acetic acid the demand is growing at 4 percent."

Rajesh Prasad, managing director of Assam Industrial Development Corporation (AIDC) added incorporated in 1971, Assam Petro-Chemicals was the first entity to manufacture petrochemicals in India using natural gas as feedstock.