The Assam Gas Cracker Project conceived as part of the Assam Accord signed in 2015 is yet to see the light of the day. It has been plagued by a host of problems starting from location to economic viability. Originally planned at Tengakhat, it was later shifted to a place called Lepetkata. The project is now being implemented by GAIL (a Government of India enterprise) as the lead promoter (70% share) with another public enterprise OIL (20% share) and the Government of Assam as minor partners. GAIL had to be brought in after India’s largest private-sector enterprise Reliance Industries backed out of the project saying that it was economically unviable. The land acquisition for the project is yet to be completed and there is still a lot of uncertainty regarding the availability of raw materials for production. In the meantime, the project cost has spiraled many times over to INR 50 billion, which is likely to go up further.
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