[2/7] Assam Petrochemicals Limited set for expansion, to invest 1028 crore. Assam Petrochemicals Limited (APL), the only PSU in the state listed in the Bombay Stock Exchange, is poised for large-scale expansion in the production of methanol and acetic acid. The company is going to produce 500 tonnes of methanol and 200 tonnes of acetic acid per day, with a capital outlay of Rs 1,028 crore. The Namrup-based PSU, with a net worth of Rs 70 crore, signed financial agreements with 10 banks, the Oil India Limited and other equity holders on Monday in Guwahati for the new project. Of the total Rs 1,028-crore outlay, equity capital to the tune of Rs 393 crore will be invested by OIL, the Assam government and the Assam Gas Company Limited. The remaining Rs 635 crore will be debt capital from banks. The State Bank of India will be the lead bank to finance the project. APL officials said the growing demand for methanol and acetic acid in the domestic market prompted the company to increase its investment. "About 60 per cent of the domestic demand is met from imports. While the demand for methanol is growing at the rate of six per cent annually, the demand for acetic acid is growing at the rate of four per cent annually. Since there is a demand already, there will be no problem in marketing," said APL managing director, Ratul Bordoloi. The company enhanced the production capacity of its formalin plant from 100 tonnes per day to 125 tonnes per day last year. APL started its commercial production of methanol and formalin in June 1976 with its two plants of 21 metric tonnes and 31 metric tonnes per day respectively. Chairman Rameshwar Dhanowar said, "APL is the first company in the state to use natural gas from the state for production." State industries commissioner Rajesh Prasad said this is one of the largest investments in the state by a PSU. Source:TOI
Posted on: Tue, 02 Jul 2013 09:53:01 +0000
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