Brahmaputra Cracker and Polymer Ltd (BCPL) expects to achieve financial closure for its proposed Rs 5,460 crore gas cracker project, to set up an integrated petrochemical complex at Lepetkata in Dibrugarh, Assam by October 2009. BCPL is a JV company of GAIL with 70 per cent equity participation and the remaining 30 per cent equity is shared equally among Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL) and Assam Government.

So far, BCPL has made a total financial commitment of around Rs 1,720 crore for the project. Final basic design and engineering packages for all units have been received and accordingly material requisition and ordering of equipment are in progress.

The petrochemical complex is likely to comprise of Ethylene cracker unit, downstream polymer and integrated off-site/utilities plants. The complex has been configured with a capacity of 2,20,000 tpa of Ethylene and 60,000 tpa of propylene with natural gas and naphtha as feed stock.

The petrochemical complex is likely to produce 2,20,000 tpa of HDPE/LLDPE, 60,000 tpa of Polypropylene, 55,000 tpa of raw Pyrolysis Gasoline and 12,500 tpa of Fuel oil.

OIL and NRL is to supply six mmscmd of natural gas and 1,60,000 tpa of naphtha respectively as feedstock to the complex. The balance feedstock requirement of 1.3 mmscmd of gas up to 2012 and one mmscmd thereafter is considered from ONGC.

The company has placed orders of over Rs 990 crore and tendering for other items to the tune of Rs 1,400 crore is in process. Site delivery will progressively start from May 2010 and is likely to be completed by September 2011. Similarly, orders for critical works are being placed progressively from November 2009 to May 2010.

The company has completed barbed wire fencing, topographical and geotechnical surveys, pipeline and hydrological route survey, infrastructure for construction power and construction of site office. Meanwhile, various site activities such as administrative block building, site grading, plant building and non-plant building works, product warehouse, piling works and boundary wall.

The project is scheduled for commissioning in April 2012.

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Addendum:

Brahmaputra Cracker and Polymer Ltd (BCPL) has achieved financial closure for its proposed Rs 5,460 crore gas cracker project, to set up an integrated petrochemical complex at Lepetkata in Dibrugarh, Assam.

The funding of the project has been envisaged with a debt-equity ratio of 2:1. 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 Union 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 and SPA Merchant Bankers. 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.