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Assam govt gives ultimatum to Reliance to start gas cracker project by Jan 31

The Assam government has threatened to hand over the Rs 36 billion gas cracker project to another company, if Reliance does not start work by January 31.

Assam Chief Minister Prafulla Kumar Mahanta said on Wednesday in Dibrugarh that Reliance should be blamed for the delay in much-awaited gas cracker project. Reliance was awarded the project three years ago.

"The state government might hand it over to others, if Reliance does not start work immediately," Mahanta said. His warning came following the accusation made by the Reliance that the state government's dilly-dallying tactics were responsible for the delay in implementation of the project, the biggest in the entire region.

Mahanta said in spite of providing 350-acre plot at Tengakhat near Dibrugarh, the proposed site of the gas cracker project, and fulfilling other formalities for setting up the said project, Reliance is yet to form their board of directors for the proposed gas cracker project.

According to a tripartite meeting among the Assam government, Union petroleum ministry and Reliance in New Delhi last September, a work schedule was prepared, where it was decided that by December 31, the agreement for gas linkage with Oil India Limited was to be finalised.

Similarly by January, the gas linkage with Gas Authority of India Limited was to be finalised. But there had been some delay and according to the state government industry department's own source, all the parties were working on it. Reliance had already recruited people for the gas cracker project and they were being trained at Jamnagar in the Hazira petrochemical complex of Reliance.

The chief minister also indicated that OIL was still willing to accept the project, which would produce 300,000 tonnes of methylene per annum.

The All Assam Students' Union had decided to press the Centre for cancellation of the letter of intent, given to Reliance Industries Limited, to set up the gas cracker project at Tengagkhat in protest against the delay in starting the construction work by the company.

The AASU president, Sarbananda Sonowal, today said RIL was yet to respond to the ultimatum for starting works by December 31 following which the AASU had decided to demand cancellation of the company's letter of intent for the project and floating of fresh tender.

The AASU would raise the demand before the Union home ministry in their next round of tripartite talk on implementation of the Assam accord, scheduled to be held on January 25 next.

It might be mentioned that the Union home ministry was the nodal agency for the project, envisaged under the Assam accord in 1983.

The AASU leaders had alleged that RIL had not taken any step on the project even after the price of the gas for the plant had been fixed and requisite land made available.

UNI

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