Top
Begin typing your search above and press return to search.

Gas cracker project clears import hurdle

By Spl Correspondent
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print
  • Facebook
  • Twitter
  • Whatsapp
  • Telegram
  • Linkedin
  • Print

NEW DELHI, Sept 18 � The Assam gas cracker project cleared yet another hurdle, with the Department of Chemicals and Petrochemicals (DCPC) clearing Brahmaputra Cracker and Polymer Limited�s (BCPL) application for issue of project import certificate.

According to sources, BCPL had applied to DCPC for issue of project import certificate under Custom heading 98.01for availing duty concession for the import of capital goods. The project import certificate has been given for setting up of the Rs 5,460-crore Assam Gas Cracker project, said sources.

BCPL has submitted a list of capital goods, which is based on the purchase orders placed by it on various foreign manufacturers and suppliers, sources disclosed.

After examining BCPL�s request, DCPC has recommended for issue of Project Import Certificate under Custom heading 98.01 of the Custom Tariff Act for import of capital goods of Freight on Board (FOB) value USD 8,80,000.

�The DCPC also asked the Custom authority to check the value of the capital goods,� sources said, adding that the project is currently under implementation and various measures, including acquisition of land, civil work and other detailed engineering, are in progress.

BCPL holds the (IEM No. 3319/SIA/IMO/2008) for manufacture of 2,20,000 MTPA ethylene, 60,000 MTPA propylene, 2,20,000 MTPA HDPE,LLDPE, 60,000 MTPA polypropylene at its Lepetkata plant in Dibrugarh district.

Projects Notified under Heading 98.01of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the Central Government, having regard to the economic development of the country, notifies specific project for the purpose of assessment. Only a handful of projects including the ambitious Drinking Water Supply Projects, for supply of water for human or animal consumption, have been so notified.

As of now, Pipeline Expansion Phase IIIA - Jorhat to Bongaigaon is one such project in Assam that has been notified under the special provision. Others projects include Salaya-Koyali Mathura Crude Oil Pipe Line Project, Mathura-Delhi-Ambala-Jullundur Product Pipeline Project, Operation Flood III Project of National Dairy Development Board besides electrification of railway tracks and Gas Pipeline Projects of the Gas Authority of India Limited, amongst others.

The Assam gas cracker project has been accorded excise duty exemption for 10 years and exemption on IT services for the same number of years. The project has also been sanctioned capital subsidy of Rs 2138 crore and feedstock subsidy of Rs 908.91 crore.

However, BCPL had sought a revision of the gas prices pointing to the possible adverse impact on the project because of the price escalations.

BCPL is a joint venture company promoted by GAIL (India) Limited with 70 per cent equity stake. The remaining 30 per cent equity is shared equally among Oil India Limited, Numaligarh Refineries Limited (NRL) and the Assam government.

More in Entertainment
Next Story
Similar Posts
Gas cracker project clears import hurdle

NEW DELHI, Sept 18 � The Assam gas cracker project cleared yet another hurdle, with the Department of Chemicals and Petrochemicals (DCPC) clearing Brahmaputra Cracker and Polymer Limited�s (BCPL) application for issue of project import certificate.

According to sources, BCPL had applied to DCPC for issue of project import certificate under Custom heading 98.01for availing duty concession for the import of capital goods. The project import certificate has been given for setting up of the Rs 5,460-crore Assam Gas Cracker project, said sources.

BCPL has submitted a list of capital goods, which is based on the purchase orders placed by it on various foreign manufacturers and suppliers, sources disclosed.

After examining BCPL�s request, DCPC has recommended for issue of Project Import Certificate under Custom heading 98.01 of the Custom Tariff Act for import of capital goods of Freight on Board (FOB) value USD 8,80,000.

�The DCPC also asked the Custom authority to check the value of the capital goods,� sources said, adding that the project is currently under implementation and various measures, including acquisition of land, civil work and other detailed engineering, are in progress.

BCPL holds the (IEM No. 3319/SIA/IMO/2008) for manufacture of 2,20,000 MTPA ethylene, 60,000 MTPA propylene, 2,20,000 MTPA HDPE,LLDPE, 60,000 MTPA polypropylene at its Lepetkata plant in Dibrugarh district.

Projects Notified under Heading 98.01of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the Central Government, having regard to the economic development of the country, notifies specific project for the purpose of assessment. Only a handful of projects including the ambitious Drinking Water Supply Projects, for supply of water for human or animal consumption, have been so notified.

As of now, Pipeline Expansion Phase IIIA - Jorhat to Bongaigaon is one such project in Assam that has been notified under the special provision. Others projects include Salaya-Koyali Mathura Crude Oil Pipe Line Project, Mathura-Delhi-Ambala-Jullundur Product Pipeline Project, Operation Flood III Project of National Dairy Development Board besides electrification of railway tracks and Gas Pipeline Projects of the Gas Authority of India Limited, amongst others.

The Assam gas cracker project has been accorded excise duty exemption for 10 years and exemption on IT services for the same number of years. The project has also been sanctioned capital subsidy of Rs 2138 crore and feedstock subsidy of Rs 908.91 crore.

However, BCPL had sought a revision of the gas prices pointing to the possible adverse impact on the project because of the price escalations.

BCPL is a joint venture company promoted by GAIL (India) Limited with 70 per cent equity stake. The remaining 30 per cent equity is shared equally among Oil India Limited, Numaligarh Refineries Limited (NRL) and the Assam government.

More in Entertainment
Similar Posts