Power Finance Corp inks pact with Assam Petrochemicals to provide Rs 1,229 crore

5 Sep 2023 , 09:44 AM

On Monday, the state-owned Power Finance Corporation (PFC) agreed to offer a Rs 1,229 crore term loan to Assam Petrochemicals for the construction of a 500 tonnes per day methanol facility at Namrup and a 200 tonnes per day formalin plant at Boitamari in Assam.

PFC and Assam Petrochemicals Ltd (APL) entered into a loan agreement on September 4, 2023, for extending a term loan of Rs 1,229 crore for the implementation of 500 Tons Per Day (TPD) Methanol Plant. This includes their 11 MW Captive Power Plant (CPP) at Namrup and 200 TPD Formalin Plant, including their Captive 0.90 MW power plant at Boitamari in Assam at an estimated Project Cost of Rs 1,827 crore, said PFC in its statement.

On completion, the Prime Minister will open the 500 TPD Methanol Plant, which includes an 11 MW CPP, on April 14, 2023.

The project, which includes the 200 TPD Formalin Plant, is set to go into commercial operation on March 31, 2024.

The APL is a state-owned public-sector enterprise of the Government of Assam (GOA), consisting of the GOA, the Assam Industrial Development Corporation (AIDCL), the Assam Gas Co Ltd (AGCL), and Oil India.

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