The Hindu Business Line : Brahmaputra Cracker ties up funds for Assam project

Mr B.C. Tripathi, Chairman of BCPL and Chairman and Managing Director of GAIL (India) Ltd), said, “The funding of this project has been envisaged with a debt-equity ratio of 2:1.”

Speaking to media persons after achieving the financial closure here on Thursday he said, “Of the total project cost of Rs 5,460 crore, Rs 2,138 crore has been given as capital subsidy and Rs 909 crore as feedstock subsidy by the Government. Of the balance Rs 3,124 crore, the equity component is Rs 1,041 crore. The debt component of Rs 2,083 crore has been tied up. Of this, loan of Rs 327 crore has been tied up with Oil Industry Development Board and the balance debt component of Rs 1,756 crore has been now tied-up.” The balance debt has been syndicated by a consortium of Punjab National Bank (leader), Almondz Global Securities Ltd and SPA Merchant Bankers Ltd.

The banks participating in the consortium are Punjab National Bank, Bank of Baroda, Bank of India, Andhra Bank, Allahabad Bank, Corporation Bank, Jammu and Kashmir Bank, and State Bank of India.

“The 2,80,000-tonne-a-year petrochemical plant would be commissioned in 2012,” he said.

The petrochemical complex has been configured with a capacity of 2,20,000 tonne a year of ethylene and 60,000 tonne a year of propylene with natural gas and naphtha as feedstock.

Oil India Ltd and Numaligarh Refinery Ltd will supply 6 mscmd of natural gas and 1,60,000 tonne a year of naphtha respectively as feedstock to the complex. The balance feedstock requirement of 1.35 mscmd of gas to up to 2012 and one mscmd thereafter is considered from ONGC.

BCPL is a joint venture company between GAIL, Oil India, Numaligarh, and the Government of Assam.

GAIL has 70 per cent stake and the other partners 10 per cent each.

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