PFC to provide Rs 1,299 crore loans to Assam Petrochemicals

PFC to provide Rs 1,299 crore loans to Assam Petrochemicals for methanol and formalin plant in Assam 

Guwahati: The Power Finance Corporation (PFC), a Maharatna power PSU, has entered into an agreement to provide a term loan of Rs 1,229 crore to Assam Petrochemicals (APL) for the establishment of a 500-tonnes-per-day methanol plant in Namrup and a 200-tonnes-per-day formalin plant in Boitamari, Assam.

"PFC and APL have inked a loan agreement for a term loan amounting to Rs 1,229 Crore to facilitate the implementation of a 500 TPD Methanol Plant, accompanied by an 11 MW Captive Power Plant (CPP) in Namrup, as well as a 200 TPD Formalin Plant with a captive 0.90 MW power plant in Boitamari, Assam," stated the power PSU on X (formerly Twitter).

The signing ceremony took place in the presence of PFC's Chairperson & Managing Director (CMD), Parminder Chopra, Director (Projects) Rajiv Ranjan Jha, Director (Commercial) Manoj Sharma, ED (Projects) HK Das, and APL officials, including APL's Chairman, Bikul Ch. Deka, and Managing Director Rajnesh Gogoi.

The 500 TPD Methanol Plant, along with the 11 MW CPP, was inaugurated by the Prime Minister on April 14, 2023, upon its completion. The entire project, including the 200 TPD Formalin Plant, is expected to commence commercial operations by March 31, 2024.

APL is a state public sector undertaking of the Government of Assam (GOA), comprising various entities including GOA, Assam Industrial Development Corporation (AIDCL), Assam Gas Co Ltd (AGCL), and Oil India. APL initiated its operations in 1976 and has been engaged in the sale of methanol since 1989 and formalin since 1998. It has also expanded its business to neighboring countries, including Bangladesh, Bhutan, and Nepal.

This partnership between PFC and APL underscores PFC's ongoing commitment to support and contribute to the development of the northeastern region.

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