NEW DELHI, May 17 � Faced with criticism over delay in execution of the Assam Gas Cracker Project, chairman-cum-managing director (CMD) of Gas Authority of India Limited (GAIL) BC Tripathi said today that 15 per cent of the project work has been completed till date.
Major construction work of Assam Gas Cracker Project would commence after the monsoon season, with orders for heavy critical items scheduled to be placed in July, said the CMD GAIL.
Addressing a press conference on the occasion of presentation of audited financial results of GAIL (India) Limited for the year 2009-10, the CMD, giving an update on the project work, said that contracts for power and steam gas turbines have been awarded.
There was apprehension that the schedule of the combined cycle cogeneration power plant and gas turbine compressor might delay the commissioning of the project. The issue was taken up with the BHEL and the public sector undertaking was requested to expedite the work to ensure timely delivery, sources said.
Meanwhile, the CMD reiterated that the financial closure of the Brahmaputra Crackers and Polymer Limited (BCPL) has been achieved and currently about 3,500-4,000 workers are engaged at the project.
�As you are aware Assam has limited working session, after the monsoon season construction work will start. We will then need 10,000-12,000 workers,� said Tripathi.
�Order for critical items for construction and the cracker will be placed in July,� he added.
At least 60 officers have been recruited including the chief general manager and managing director. The engineers are undergoing training for six-nine months at our petro-chemical projects and some have been despatched to the project site,� he said.
�At least 15 per cent overall progress has been achieved,� the CMD claimed.
The CMD�s assertion assumes significance in the face of reports that the Assam Gas Cracker Project has managed to achieve only 12.9 per cent progress against the projected target of 24.3 per cent.
Sources said the process technology licensors had been selected; basic design and engineering packages were received from the licensors; and material requisition and ordering of equipment and contracts were in progress
Purchase orders worth Rs 3,104 crore have been released, sources disclosed.
Major hurdle was traced to delays in receipt of licensor�s package, which had a cascading effect on the detailed engineering and procurement activities.
As reported by this newspaper, site delivery of critical components is scheduled to start from May and is likely to be completed by September, 2011. Similarly, orders for critical works are being placed progressively from November 2009 to May 2010.
�We should be able to commission the project by April 2012,� the chairman had then contended, revealing that the project work is being monitored at the highest level of the government, with the Prime Minister�s Office reviewing the progress every month.
Meanwhile, according to the audited figures, turnover (net of excise duty) in the year 2009-10 increased by 5 per cent to Rs. 24,996 crore from Rs. 23,898 crore in financial year 2008-09.
The Profit Before Tax during the year 2009-10 increased by nine per cent to Rs. 4,578 crore from Rs. 4,204 crore in the previous year. The Profit After Tax during the year 2009-10 increased by 12 per cent to Rs. 3,140 crore from Rs. 2,804 crore in the previous year. The gross margin during the year 2009-10 increased by 7 per cent to Rs. 5,210 crore from Rs. 4,851 crore, the CMD announced.
