NEW DELHI, July 5 ? Yet another hurdle in setting up of the mega gas cracker project is likely to be cleared shortly, with the Oil and Natural Gas Corporation (ONGC) and Reliance Industries Limited (RIL) all set to sign the much-delayed Gas Supply Agreement (GSA) by the month-end. The signing of the pact may bring the project one step closer to execution but Assam Government is still awaiting a response from the Union Petroleum and Natural Gas Ministry (P&NGM), which was entrusted with the responsibility to identify the alternate source of gas supply to meet the shortfall in supply of feedstock. The State Industries Minister, Bhubaneswar Kalita who was in the capital told this newspaper that the Union Ministry was yet to get back to them on this issue. The Minister also conceded that implementation may be delayed owning to RIL chairman, Dhirubhai Ambani?s hospitalisation.
Meanwhile, ONGC bowing to pressure from the Centre has relented to sign the GSA likely by the end of the month with the RIL. The ONGC has agreed to supply gas for production of 50,000 tonne of ethylene to Reliance Assam Petrochemical Limited (RAPL). The supply of gas is less then what was demanded for production of 70,000 tonne of ethylene. The Oil company has since expressed its inability to supply the demand feedstock forcing the Petroleum Ministry to intervene to break the logjam. Both the ONGC and Oil India Limited (OIL) have agreed to supply gas for 15 years period at a heavily subsidised rate. The price structure of the gas to be supplied by ONGC is being worked out, according to reports.
The Rs 3,700 crore project, according to the terms of agreement worked out is to be completed within 44 months of start of project work. The Central Government under the package deal has also committed a one-time subsidy of Rs 377 crore to RAPL, besides an additional Rs 72 crore to OIL by way of financial support to set up infrastructure support in aid of the project. State Government sources meanwhile, said that they still closely watching the developments in the light of the four-month deadline served by Chief Minister, Tarun Gogoi. On the other hand, sources also conceded that they have to work overtime to prepare the ground work to hand over the 1100 bighas of land for the project.