Assam Petrochemicals Limited To Invest Rs 1337 Crore To Set Up Second Unit

Assam Petrochemicals Limited To Invest Rs 1337 Crore To Set Up Second Unit

Image Credits By: assamjournal.com

In what is billed as the single largest investment by a state PSU in recent times, Assam Petrochemicals Limited (APL) will invest close to Rs 1337 Crore to set up second unit for producing methanol and Formalin.

The new plant in Namrup in Upper Assam will produce 500 tonnes per day (TPD) Methanol and 200 TPD Formalin. With these the overall capacity of APL will be augmented to 600 TPD of Methanol and 325 TPD of Formalin.

Chairman of APL, Jagdish Bhuyan told ET, “This will be the single largest investment by a state PSU in recent times, we will commission the unit by April 2019. Chief minister Sarbananda Sonowal will lay foundation stone for the project next month. “

APL started production around four decades back with capital investment of Rs 9 Crore.

Bhuyan said, “There is huge demand for our product and presently our buyers are spread across Northeast India, West Bengal, Bihar, Uttar Pradesh besides foreign countries including Nepal, Bangladesh and Bhutan.”

He said that presently India is producing just 25 percent of Methanol requirement and rest is imported from Middle East. “Our initiative will contribute to make in India initiative. Besides new employment avenues this new project will trigger growth of downstream industries.”

Ratul Bordoloi, Managing Director of APL said, “OIL India Limited will have 49 percent stake in the new project while Assam government owned Assam Gas Company limited (AGCL) and Assam Industrial Development Corporation (AIDC) will have 51 percent share.”

Bordoloi said, “Out of Rs 1337 Crore investment, Rs 890 Crore will come as loan. Demand for methanol will further increase as government of India is in the process of notifying of M15 fuel blends, which uses methanol as a blend.” Read more

READ  Assam Petrochemicals Limited Plans INR 1337 Crore Investment In Namrup

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