NEW DELHI, June 30— Prospect of revival of the mega gas cracker project has brightened with a new promoter, Gas Authority of India Limited (GAIL) seeking a series of additional concessions over and above those already available. According to highly placed sources, GAIL has written a letter to Chief Minister of Assam appraising him of their conditions. The Rs 3,700 crore gas cracker project is a joint venture project between State Government-owned AIDC and Reliance Assam Petrochemical Limited (RAPL). But inordinate delay in setting up the project by the private sector giant Reliance India Limited (RIL) because of reluctance of ONGCL to sign the gas supply agreement and additional subsidy component has forced the Government of India under pressure of the State Government to look elsewhere.
The entry of GAIL into the scene has come as breather for Assam Government, which was hard-put to start the project without the original promoter. Meanwhile, sources said that GAIL has sought exemption on raw materials and finished products, exemption from royalty and allotment of free land for the project from Assam Government to start the project.
In its letter to Assam Government, GAIL has asked the State Government to transfer the Letter of Intent (LOI) for the project to the company. GAIL in turn proposes to sign a fresh agreement with AIDC to ensure better coordination and faster implementation of the project. But this may be problem area for Assam Government because the previous AGP regime has transferred the LoI to RAPL and it may not be willing to surrender it, sources said.
GAIL has demanded exemption of customs duty and countervailing duty on imports of equipment and supplies and exemption of excise duties on domestic equipment and supplies, raw materials and finished products. In addition, it also wants an OIDB loan for the project at an interest rate of 6.5 per cent. On the crucial feedstock front, GAIL is looking for supply of 150 KTA ethylene equivalent naphtha over and above a commitment for supply of gas to the tune of 5 (130,000 TPA ethylene) MMSCMD from Oil India Limited (OIL) and 1.35 MMSCMD (70,000 TPA ethylene) from ONGC.