Ministry of Petroleum & Natural Gas to gain control
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the transfer of administrative control of Brahmaputra Cracker and Polymer (BCPL), the Central Public Sector Undertaking implementing the Assam Gas Cracker Project (AGCP) from Department of Chemicals & Petrochemicals to Ministry of Petroleum & Natural Gas.
The CCEA has also approved the following:
Feedstock subsidy to BCPL for 15 years of plant operation to maintain minimum Internal Rate of Return (IRR) of 10% (post tax). To bring the IRR to 10%, BCPL has estimated feedstock subsidy of approximately Rs4600 crore for the project for 15 years of plant operation. BCPL will submit the proposal on yearly basis from the next financial year onwards and the administrative Ministry / Department will devise a mechanism to examine the proposal in consultation with the Ministry of Finance.
Ministry of Petroleum & Natural Gas to make firm arrangements through concerned PSUs for supply of committed quantity and quality of feedstock to the project as envisaged in the earlier CCEA approval of 2006.
The project is seen as a part of the implementation of Assam accord, and would give impetus to the development of north-eastern region of the country and will improve the socio economic conditions of the people of Assam through increased employment.
Source: Business Standard