BCPL incurs Rs 500-Cr loss in past two years, govt seeks revival plan
In the next few days, we will try to see how we can develop and diversify BCPL to make it viable, says CM.;
A file image of Assam CM during his visit to BCPL, Dibrugarh in 2021.
Dibrugarh, Mar 23: Brahmaputra Cracker and Polymer Limited (BCPL), also known as the Assam Gas Cracker Project, is staring at a bleak future owing to huge losses.
After holding a review meeting with the BCPL management at its office in Lepetkata here, Chief Minister Himanta Biswa Sarma said the Assam Gas Cracker Project is in financial crisis.
"After reviewing the performance of BCPL, we have learned that it is facing challenges. In the next few days, we will try to see how we can develop and diversify BCPL to make it viable," the Chief Minister said.
The Chief Minister also inspected the petrochemical complex along with Industries and Commerce Minister Bimal Borah and Power Minister Prasanta Phukan.
Sarma said the project incurred an annual loss of about Rs 500 crore in the past two years. They are heavily dependent on bank loans, and if they continue to borrow from banks, there will be major problems in days to come, he said.
The Chief Minister said the promoters of the project have been discussing the problem and they will sit again to find ways to get the largest petrochemical project of the Northeastern region out of the crisis. On the continuation of feedstock subsidy from the Government of India, the Chief Minister said the subsidy, which is a temporary solution, will not sustain the project.
"The Government of India may extend the feedstock subsidy for another ten years, but how will the project operate thereafter? We will have to think of a permanent solution," he stated.
The Assam Gas Cracker Project is an offshoot of the historic Assam Accord. The project received approval from the government on April 18, 2006 with a cost of Rs 5,460.61 crore. However, the project cost was revised thrice and the final revised project cost stood at Rs 9,965 crore.
BCPL was incorporated on January 8, 2007, to implement the project with GAIL as the main promoter with 70 per cent equity participation. The balance 30 per cent is equally shared by Oil India Limited, Numaligarh Refinery Limited, and the Government of Assam. BCPL was projected to usher in a new era of socio-economic development in the region by creating job opportunities and industrialisation through setting up of downstream industries. However, the present crisis has put a question mark over these expectations.
By
Staff Correspondent
