Power Finance Corp signs an agreement to give Assam Petrochemicals a term loan worth Rs 1,229 crore

5 Sep 2023 , 02:59 PM

A deal to give Assam Petrochemicals a Rs 1,229 crore term loan to build a 500 tonnes per day methanol facility at Namrup and a 200 tonnes per day formalin plant at Boitamari in Assam was inked on Monday by the state-owned Power Finance Corporation (PFC).

‘On September 4, 2023, PFC and Assam Petrochemicals Ltd. (APL) signed a loan agreement for the extension of a term loan of Rs 1,229 crore for the implementation of 500 TPD methanol plant, including 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 the PFC statement.

Upon completion on April 14, 2023, the 500 TPD Methanol Plant, which includes an 11 MW CPP, was inaugurated by the Prime Minister.

By March 31, 2024, the project, which includes the 200 TPD Formalin Plant, is expected to commence commercial opperation.

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

The APL began conducting business in 1976 and has been supplying formalin and methanol since 1989, respectively.

Currently, Bangladesh, Bhutan, and Nepal are APL’s new markets for commercial expansion.

The collaboration between PFC and APL demonstrates PFC’s ongoing aid and support for the growth of the northeastern region.

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