Power Finance Corporation Partners with Assam Petrochemicals for Methanol and Formalin Plants
Introduction:
In a significant development for the energy and chemical sectors, the state-owned Power Finance Corporation (PFC) has inked a crucial agreement with Assam Petrochemicals Ltd (APL). This pact, signed on September 4, 2023, outlines the provision of a substantial term loan amounting to Rs 1,229 crore to facilitate the establishment of a 500 tonnes per day (TPD) methanol plant in Namrup and a 200 tonnes per day formalin plant in Boitamari, both located in the state of Assam, India.
Project Details:
The loan agreement encompasses the financing of two crucial projects. Firstly, it includes support for the construction of the 500 TPD Methanol Plant, accompanied by an 11 MW Captive Power Plant (CPP) in Namrup. Secondly, the agreement encompasses funding for the 200 TPD Formalin Plant, complemented by a Captive 0.90 MW power plant in Boitamari. The total estimated project cost stands at a substantial Rs 1,827 Crore.
Milestone Achieved:
The Methanol Plant in Namrup, featuring the 11 MW CPP, reached a significant milestone earlier this year when it was inaugurated by the Prime Minister on April 14, 2023, marking its successful completion.
Future Outlook:
The forthcoming phase of this ambitious project involves the commissioning of the 200 TPD Formalin Plant, with operations set to commence by March 31, 2024.
About Assam Petrochemicals Ltd (APL):
APL is a state public sector undertaking of the Government of Assam (GOA), and it comprises various key stakeholders, including GOA, Assam Industrial Development Corporation (AIDCL), Assam Gas Co Ltd (AGCL), and Oil India. The company’s rich history dates back to 1976, and it has been actively involved in the production and sale of methanol since 1989 and formalin since 1998. Moreover, APL has expanded its operations into neighboring countries, fostering regional economic growth with its products reaching Bangladesh, Bhutan, and Nepal.
Strategic Partnership:
This collaboration between PFC and APL serves as a testament to PFC’s unwavering commitment to support and bolster the development of the northeastern region of India. By extending financial assistance for these essential projects, PFC is playing a vital role in the region’s industrial growth and energy infrastructure.
Conclusion
In conclusion, this partnership between Power Finance Corporation and Assam Petrochemicals Ltd represents a significant stride towards the establishment of crucial methanol and formalin plants in Assam. These initiatives not only contribute to the economic development of the region but also highlight the importance of sustainable energy and chemical production in India’s northeastern states.
1. What is the purpose of the term loan agreement between PFC and Assam Petrochemicals?
The term loan agreement between Power Finance Corporation (PFC) and Assam Petrochemicals (APL) aims to provide financial support for the establishment of a 500 TPD methanol plant and a 200 TPD formalin plant in Assam, India.
2. How much is the term loan provided by PFC to APL for these projects?
PFC has extended a term loan of Rs 1,229 crore to Assam Petrochemicals to fund the projects.
3. When was the Methanol Plant in Namrup, Assam, inaugurated?
The Methanol Plant in Namrup, along with the 11 MW Captive Power Plant, was inaugurated by the Prime Minister on April 14, 2023.
4. When is the 200 TPD Formalin Plant expected to commence commercial operation?
The 200 TPD Formalin Plant is scheduled to begin commercial operation by March 31, 2024.
5. Who is Assam Petrochemicals Ltd (APL)?
APL is a state public sector undertaking of the Government of Assam, comprising various stakeholders, including GOA, Assam Industrial Development Corporation (AIDCL), Assam Gas Co Ltd (AGCL), and Oil India. It has been involved in the production and sale of methanol and formalin since 1989 and 1998, respectively.
6. Does APL operate beyond Assam?
Yes, APL has expanded its business to neighboring countries such as Bangladesh, Bhutan, and Nepal.
7. What is the significance of the partnership between PFC and APL?
This partnership underscores PFC’s commitment to supporting the development of the northeastern region of India. It plays a crucial role in fostering industrial growth and enhancing energy infrastructure in the region.