PM promises rapid industrialisation of India's northeast
Apr 9, 2007 - 12:17:25 PM
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RAPL was granted various concessions to implement the project. But the deal with RAPL was shelved in 2005, with Reliance virtually backing out of the project citing technical reasons like non-availability of sufficient feedstock.
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By IANS,
[RxPG] Lepetkata - April 9 - Prime Minister Manmohan Singh Monday pledged New Delhi's support for rapid industrialisation of the northeast, saying the region requires investments to help ease its spiralling unemployment problem.
'Rapid industrialisation and development of the northeast has been the topmost priority and unshakeable commitment of the UPA - government,' the prime minister said here.
Manmohan Singh was speaking at a massive public rally at Lepetkata, 520 km east of Assam's main city Guwahati, after laying the foundation stone for a Rs.54 billion gas cracker project - the Brahmaputra Cracker and Polymer Ltd.
'This is a historic day for not only Assam but also for the entire northeast. This project would herald an era of economic growth, peace and prosperity for the region.
'This gas cracker project would open up new productive employment for the youth of Assam. I am told some 100,000 people would get direct or indirect employment opportunities,' he said.
He added that the northeast could become a potential investment zone with the central government announcing a new industrial policy for the region.
'We have raised capital investment subsidy to 30 percent in the new northeast industrial policy. India is marching ahead and we want the northeast to prosper in terms of economic growth and industrialisation,' Manmohan Singh said.
The gas cracker project is to be implemented by the Gas Authority of India Ltd - with 70 percent equity participation in five years time. The remaining 30 percent equity would be shared equally among Oil India Ltd -, Numaligarh Refinery Ltd - and the Assam government.
The mega project is being set up at Lepetkata.
'Some 8,500 people would get direct employment while some 100,000 people would get employment opportunities as a result of investments in downstream plastic processing industries and allied activities,' Assam Chief Minister Tarun Gogoi told IANS.
According to preliminary estimates, at least 500 plastic processing industries are likely to come up in the region when this project becomes operational.
'There would be plastic parks in the area as part of the project and would surely benefit the people of Assam in a big way,' Gogoi said. The petrochemical complex would comprise a cracker unit, downstream polymer and integrated off-site utilities plants.
The products from the proposed project would be 220,000 tonnes of polythene, 60,000 tonnes of polypropylene, 55,000 tonnes of raw pyrolysis gasoline and 12,500 tonnes of fuel oil per year.
As part of Assam's aggressive policy to give a fillip to industrial activities, it was agreed to grant exemption from entry tax on capital goods, works contract tax during construction period, sales tax and VAT - on feedstock for 15 years from the date of commencement of production.
The project was proposed as a part of the historic Assam Accord of 1985. The project was gathering dust since 1991 when New Delhi issued a letter of intent - to the Assam Industrial Development Corp, a government undertaking.
In February 1997, the LoI was transferred to the Reliance Assam Petrochemicals Ltd - - a joint venture company of Assam Industrial Development Corp and Reliance Industries Ltd.
RAPL was granted various concessions to implement the project. But the deal with RAPL was shelved in 2005, with Reliance virtually backing out of the project citing technical reasons like non-availability of sufficient feedstock.
The prime minister, during his two-day visit, also laid the foundation stone for a second bridge over the Brahmaputra near Guwahati Sunday. He will leave for New Delhi later Monday.
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