State-owned Power Finance Corp. on Monday signed a pact to provide Rs 1,229 crore term loan to Assam Petrochemicals to implement a 500 tonnes per day methanol plant at Namrup and 200 tonnes per day formalin plant at Boitamari in Assam.
“PFC and Assam Petrochemicals Ltd (APL) signed 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, 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,” a PFC statement said.
The 500 TPD Methanol Plant, including 11 MW CPP, was inaugurated by the Prime Minister on April 14, 2023, on completion.
The project, including the 200 TPD Formalin Plant, is scheduled to commence commercial operation by March 31, 2024.
The APL is a state public sector undertaking of the Government of Assam (GOA), comprising GOA, Assam Industrial Development Corp. (AIDCL); Assam Gas Co Ltd. (AGCL) and Oil India Ltd.
The APL started its operations in 1976 and has been in the business of selling methanol and formalin since 1989 and 1998, respectively.
Presently, APL has expanded its business to the neighbouring countries — Bangladesh, Bhutan and Nepal.
The partnership between PFC and APL highlights PFC’s continued support and assistance in developing the northeastern region.