Question : ASSAM GAS CRACKER PROJECT



(a) the status of Assam Gas Cracker Project;

(b) whether any agreement between Oil India Ltd. and Reliance Industries Ltd. for the supply of gas has been executed; and

(c) if so, the details thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS (SHRI RAMESH BAIS).

(a) to (c) : M/s. Reliance Assam Petrochemicals Ltd. (RAPL), a joint venture of the Assam Industrial Development Corporation (AIDC) and Reliance Industries Ltd. (RIL), holds LOI for setting up Gas Cracker Project in Assam. M/s. RAPL had earlier identified a site at Tengakhat in Dibrugarh District and taken initial steps such as commissioning of Environment Impact Assessment Study, discussions with process licensors and technology suppliers etc. However, due to objections raised by the Chabua Air Force Authorities against the proposed site, the project was required to be relocated. An alternate site has since been identified at Lapetkata in Dibrugarh District and Environment Impact Assessment Study has commenced. Government of Assam has fixed a time schedule for acquisition and handing over of land for the new site to RAPL. As regards the Gas Supply Agreement, RAPL and Oil India Ltd. (OIL) have resolved all the outstanding issues viz. clauses relating to liquidated damages, technical issues such as composition of gas, flow rates etc. RAPL and OIL have initialled the draft Gas Supply Contract on July 6, 2000. They have further agreed to execute the final Gas Supply Agreement at the earliest, subject to the approval of their respective Board of Directors and acceptance by financial institutions from RAPL side.