Parliamentary panel asks government to ensure reliable feedstock supply to BCPL

New Delhi: A Parliamentary panel on Monday asked the Centre to give top priority in ensuring more reliable feedstock supply to the Brahmaputra Cracker and Polymer Ltd (BCPL), which is implementing the Assam Gas Cracker project. The panel also asked the government to release balance amount of capital subsidy of Rs 449.45 crore that would help BCPL improve its financial condition.

“The committee do hope that all stakeholders will put in their best efforts to address the issue of adequate supply of feedstock,” the Parliamentary Standing Committee on Chemicals and Petrochemicals said in a report placed in the Lok Sabha.

The feedstock for BCPL project is natural gas and naphtha. BCPL’s plant took nearly eight months for stabilisation after commission in January 2016. [caption id=“attachment_233025” align=“alignleft” width=“380”]  The BCPL site in Dibrugarh. Image courtesy PIB[/caption] The committee found that the capacity utilisation of BCPL in 2016-17 was 37 percent and it rose to nearly 78 percent in 2017-18. “However, the plant got affected due to inadequate availability of natural gas, naphtha and also Butene-1,” the panel said. The BCPL is currently suffering due to an inadequate supply of feedstock, especially natural gas and naphtha. Oil India Ltd and Numaligarh Refinery Ltd have expressed their inability to arrange higher quantity of feedstock to BCPL, it said. The land-locked location of the project is also another hurdle for easy availability of arranging feedstock for the plant, it added. The panel suggested the government come out with a solution in a time-bound manner to enable BCPL to attain full utilisation and stabilisation with the feedstock of 68 percent gas and 32 percent naphtha so as to ensure sustainability and viability of the project. BCPL has been set up with an investment of Rs 9,965 crore. The funding pattern consisted of capital subsidy of Rs 5239.45 crore, a debt of Rs 3,307.88 crore and equity of Rs 1,417.67 crore. The company has received Rs 4,808.95 crore amount of capital subsidy so far and the balance Rs 449.45 crore is yet to be sanctioned, according to the report.