Prime Minister Manmohan Singh laid the foundation stone of the Rs 5460.61 crore (Rs 54.6 billion) Assam Gas Cracker project on Monday, now known as Brahmaputra Cracker and Polymer Ltd.
Speaking on the occasion, Petroleum Minister Murli Deora said the project will be set up with an investment of Rs 5461 crore with a capital subsidy of Rs 2138 crore (Rs 21.38 billion) from the Centre.
The plant is expected to come up within 60 months. "The project is expected to generate substantial employment opportunities, both direct and indirect, in the region. It will also attract substantial investments by way of setting up of downstream plastic processing industries," he said.
GAIL holds 70 per cent interest in BPCL. The remaining 30 per cent equity is shared equally among Oil India Ltd, Numaligarh Refinery Ltd and Assam Government.
The project is expected to be completed in 2011, U D Choubey, CMD of GAIL (India) Ltd, the lead promoter of the project, said.
The project was expected to give a boost to further investments in downstream plastic processing industries and allied activities with potential for substantial direct and indirect employment generation, Choubey said.
OIL is to supply 6 million standard cubic metres per day of gas from its Duliajan field to the petrochemical complex. Oil and Natural Gas Corporation will supply 1.35 mmscmd gas for the plant till March 31, 2012 and 1 mmscnd thereafter.
The plant shall also utilise 160,000 tonnes per annum of petrochemical grade Naphtha from NRL.