GUWAHATI, June 18 – The clouds of uncertainty over the much-anticipated Assam Gas Cracker Project seem to have somewhat disappeared with the energy major Gas Authority of India Limited (GAIL) evincing keen interest to set up the mega project subject to fulfilment of certain conditions. Conveying its decision to go ahead with the project, Proshanto Banerjee, Managing Director, GAIL, today revealed before the Chief Minister during a high-level meeting at the Janata Bhavan that it was ready to establish the project provided certain conditions were met. The conditions that the GAIL has set include sales tax exemption on raw materials and finished products, excise and customs duty exemption, location site, royalty, transport facility, security and a conducive work environment.
For such a major project, the GAIL would also seek concession from the Central Government, Banerjee said. “For such a mega project worth Rs 2,500 crore, the GAIL would seek concessions from both State and Central Governments,” he said. Looking ahead, Banerjee further stated that the GAIL has the expertise to produce 1.6 lakh tonne cubic gas from the reserves, which are locally available. According to him, the project that could come up in the next four to five years would provide a definite boost to the process of industrial development, and especially to the growth of small-scale industries in the region.
From the perspective of employment, the venture would open up job opportunities to the tune of above 600 in a direct manner, and offer indirect employment to about 1,000, he claimed. Acknowledging the importance of a locational suitability, the top brass of the GAIL insisted on the selection of a plot of land where the outflow of manufactured products is conveniently linked by road as well as rail communication. Referring to the high demand of plastic products, the GAIL Managing Director said that plastics are widely used all over the globe, and this project can cater to that growing demand. Thus, the project has the potential to have a positive impact on the State’s overall economy, he felt.
Assuring the delegation that the State Government would actively consider the conditions set by the GAIL, the Chief Minister said that he would take up the matter with the Central Government on a priority basis. He thanked the GAIL for coming forward to help launch the project. It is worth mentioning that the gas cracker project, conceived under Clause VI of the Assam Accord way back in 1985, has failed to see the light of the day due to a various reasons. Although Reliance was first entrusted with the responsibility of starting the project at Tengakhat in Dibrugarh district, it kept on dithering on the matter citing several reasons. Then the venue was shifted to Lepetkota in the same district but Reliance again failed to come to a definite decision regarding setting up of the project, saying it was no longer viable as the Centre was unwilling to concede its demands on subsidy. Thereafter the State Government approached the ONGC and the GAIL, and now with the latter showing interest to start the project there seems to a ray of hope for the much-delayed venture.