PFC provides Rs 1,229 Cr loan for Assam methanol and formalin plants

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PFC provides Rs 1,229 Cr loan for Assam methanol and formalin plants

PFC provides Rs 1,229 Cr loan for Assam methanol and formalin plants

Industry News
Sep 07,23

The Power Finance Corporation (PFC), a government-owned entity, entered into an agreement to extend a term loan of Rs 1,229 crore to Assam Petrochemicals. The loan agreement between PFC and Assam Petrochemicals Ltd (APL) was formalized on September 4, 2023.

PFC provides Rs 1,229 Cr loan for Assam methanol and formalin plants

The Power Finance Corporation (PFC), a government-owned entity, entered into an agreement to extend a term loan of Rs 1,229 crore to Assam Petrochemicals. This funding will facilitate the establishment of a methanol plant with a daily production capacity of 500 tonnes in Namrup and a formalin plant with a daily production capacity of 200 tonnes in Boitamari, both located in the state of Assam.

According to a statement by PFC, the loan agreement between PFC and Assam Petrochemicals Ltd (APL) was formalized on September 4, 2023. This loan is intended to support the implementation of the 500 Tons Per Day (TPD) Methanol Plant, which includes an 11 MW Captive Power Plant (CPP) in Namrup, as well as the 200 TPD Formalin Plant, which includes a 0.90 MW captive power plant in Boitamari. The estimated total project cost for these initiatives is Rs 1,827 crore.

The inauguration of the 500 TPD Methanol Plant, along with the 11 MW CPP, took place on April 14, 2023, in the presence of the Prime Minister. The entire project, including the 200 TPD Formalin Plant, is scheduled to commence commercial operations by March 31, 2024.

Assam Petrochemicals Ltd (APL) is a state public sector undertaking under the Government of Assam (GOA), and it consists of GOA, Assam Industrial Development Corporation (AIDCL), Assam Gas Co Ltd (AGCL), and Oil India as its stakeholders. APL initiated its operations in 1976 and has been engaged in the sale of methanol since 1989 and formalin since 1998. Furthermore, APL has expanded its business operations to neighbouring countries such as Bangladesh, Bhutan, and Nepal.

This partnership between PFC and APL underscores PFC's on-going commitment to providing support and assistance for the development of the northeastern region of India.

Source: Business Standard