The Assam Gas Cracker Project was proposed as a part of implementation of Assam Accord signed by Government of India on 15th August, 1985.
The Assam Gas Cracker Project has been approved by Cabinet Committee on Economic Affairs in its meeting held on 18th April, 2006 under an equity arrangement of GAIL (70%), OIL (10%), NRL (10%) and Govt. of Assam (10%) with a project cost of Rs. 5460.61 crores in which capital subsidy is Rs.2138 Crores. The project schedule for completion of the project is 60 months.
The site selected for Assam Gas Cracker Project is at Lepetkata, 15 km from Dibrugarh town on NH37 along river Sessa in Assam. A Joint Venture agreement has been signed on 18.10.2006 and the company 'Brahmaputra Cracker and Polymer Limited' was registered on 08.01.2007. Dr. Manmohan Singh, Hon'ble Prime Minister of India laid the foundation stone of this project on 9th April, 2007.

Present status of Assam Gas Cracker Project

The Govt. of India has also approved the capital subsidy of Rs. 2136 crores and feedstock subsidy of Rs. 908.91 for a period of 15 years for the project with exemption of excise and income tax for 10 years.

The present status of the Gas Cracker Project is as given below:

1. Land :

The total land earmarked for the project is around 3303 bighas and the following breakup:

Private land under acquisition 3030 B 1 K 1 L
Govt. land 273 B 3 K 14 L
Total land 3303 B 4K 15 L
The acquisition process of 3030 Bighas has been taken up through 10 Nos. of land acquisition cases and notification under 6(1) have already been published. The State Government has identified the land for township for the project. Zirat enumeration has been completed on 10th October, 2006 and estimate for all the cases have already been approved by the Revenue dept. The District Administration has finalized the award list for handing over possession of the land to the Joint Venture Company. The Government of Assam has sanctioned Rs. 59 crores
to meet the value of land to be converted into equity participation in the project by the Government. Moreover Rs. 18 crores has been handed over to the District Administration for payment of land value to the Pattadars. The ceiling of Rs. 41 crores has already been obtained and same will be handed to District Administration to complete all the land acquisition process.

2. The Registered and Site Office :

GAIL has opened an Office at Guwahati on 16th June, 2006 to coordinate the activities of the Project and site at Dibrugarh/ Lepetkata will be opened shortly.

3. Joint Venture Company (JVC)

Joint Venture Company in the name and style of Brahmaputra Cracker & Polymers Ltd. has already been formed and first meeting of the JVC was convened in the 1st week of Feb. 2007 and took few important decisions to expedite the process of implementation
of the Project.

4. Gas / Naphtha Supply agreement

Discussion for finalization of Gas / Naphtha supply agreement with OIL, NRL and
GAIL are over and the same is expected to be finalized by the 2nd week of April,

5. Selection of Project Management Consultant

GAIL has prepared the Tender Document for selection of Project Management Consultant on total turnkey concept covering Basic and Detailed Engineering, Procurement, Construction, Supervision and Commissioning activities including Project Management Services. The Board of JVC will finalize the Project Management Consultant shortly to chalk out the critical activities of the Project for its timely implementation.

6. Arrangement of Finance

GAIL has initiated discussion with the financial institutions / banks for arrangement of loan for the project. In principle, approval of OIDB loan has been obtained for a term loan of Rs. 327 crores.

7. Financial Closure

Financial closure of the project will be finalized after finalization of feedstock supply agreement / tying up of loan arrangement with financial institutions / banks etc.

8. Over all project Implementation schedule

The over all project implementation schedule spelling out the various important activities of the project to implement the project within a time bound period of 5 years will be finalized by the Project Management Consultant.

GAIL has already lined up a project execution group for smooth sailing of the various
activities of the project.

9. Study on Down stream and Allied Industries / Baseline Study on Socioeconomic Benefit Indicators

Consultant has been lined up to conduct the study on down stream and Allied
Industries / Baseline Study on Socioe conomic Benefit Indicators and same will be finalized by the JVC Board.

10. Exhibition on Plastics

For arranging the proposed exhibition/workshop on plastics in association with Plast India Foundation involving other JV partners and DC&PC at the Guwahati Trade Centre, necessary action has been initiated for spelling out the time, duration, course content etc. to accrue the benefits to the local youth / entrepreneurs / outside investors. A sub group representing the members all the stake holders including Plast India Foundation has already been formed to chalk out the detailed action plan for arranging the exhibition / workshop / Road shows etc.

11. Constitution of Project Apex Committee / Project Site Implementation Steering Committee

Department of Chemicals and Petrochemicals (DC&PC) is the nodal department to oversee and monitor the progress of implementation of the Project. The department has already convened several review meetings with the stakeholders and other concerned departments spelling out the time bound programme for completion of activities and monitoring the same regularly.

Moreover, a project Apex Committee consisting of the CMD & Directors of the JV partners and a high power Project Site Implementation Steering Committee headed by the Chief Secretary, Govt of Assam with Senior officials and Senior Executives from other stakeholders was formed to monitor the progress of implementation of the project. The Committee has already reviewed the progress and directed to initiate timely action to expedite the implementation process of the project. The 1st meeting was held on 28th February 2007.

Apart from this Hon'ble Chief Minister and Union Minister of State for Fertilizers and Chemicals have also reviewed the progress of the project with JV partners and senior Govt. officials from time to time and taken up critical issues with the Central Government for its early disposal.



1. CCEA has cleared the project in April, 2006 (18.4.2006) and the decision communicated by DC&PC in May, 2006 indicating the following :

Capacity : 220,000 TPA Ethylene
Product: LLDPE : 110,000 TPA
  HDPE : 110,000 TPA
  PP : 60,000 TPA


OIL : 5 MMSCMD (Gas)
ONGC : 1,35 MMSCMD (Gas)
NRL : 160,000 TPA (Naphtha)

Project Cost :Rs. 5460.61 crores


GAIL :70%
OIL : 10%
NRL : 10%
GOA/AIDC : 10%

Debt : Equity : 2 : 1

Subsidies :

  Capital Subsidy : Rs. 2138 crores
  Feedstock subsidy : Rs. 908.91 crores
  Exemption on Excise duty : 10 years
  Exemption on I.T. : 10 years
Project Site   Lepetkata, Dibrugarh
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