Rs 449.45 cr may be released for Gas Cracker this fiscal

Spl Correspondent
 NEW DELHI, Oct 31 – 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, sources said.The Centre has approved a capital subsidy of Rs 2,136 crore and a feedstock subsidy of Rs 908.91 crore for a 15-year period for the project with an exemption of excise and income tax for 10 years.

GAIL and Brahmaputra Crackers and Polymers Limited (BCPL) have already signed a deal for marketing petrochemical products sold at the plant.

The BCPL have sought feedstock subsidy of Rs 8,965 crore over the first 12.5 years and Rs 3,668 crore revenue subsidy over 10.5 years, sources said.

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.

Meanwhile, the Centre is implementing a Plastic Park scheme to support setting up of plastic parks to promote the domestic downstream plastic processing industry. Ten plastic parks have been approved by SFC, out of which, parks in Madhya Pradesh, Odisha and Assam are currently being set up and are at various stages of implementation, sources said.

The Government of India provides grant funding up to 50 per cent of the project cost, subject to a ceiling of Rs 40 crore per project, said sources.

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