Mumbai: The Rs5,460 crore- (Rs54 billion) Assam Gas Cracker project, at Lepetkata, in Dibrugarh district, a joint venture between GAIL India Ltd, Oil India Ltd (OIL), Numaligarh Refinery Ltd (NRL) and the Assam Industrial Development Corporation will be a separate company, a GAIL announcement said.

As per the equity participation approved by the cabinet committee on economic affairs (CCEA), GAIL will hold a majority stake of 70 per cent in the joint venture company. The remaining 30 per cent equity will be shared equally among Oil India, Numaligarh Refinery and the Assam Industrial Development Corporation.

However, the provisions of the Companies Act will govern the joint venture and the Assam Gas Cracker project will thus be a subsidiary of GAIL.

The petrochemical complex would comprise a cracker unit, downstream polymer and integrated off-site utilities plants.

Once operational, the project would produce 220,000 tonnes of polythene, 60,000 tonnes of polypropylene, 55,000 tonnes of raw pyrolysis gasoline and 12,500 tonnes of fuel oil per year.

The project is expected to help an estimated 100, 000 people get employment as a result of investments in downstream plastic processing industries and allied activities. According to preliminary estimates, at least 500 plastic processing industries are likely to come up in the region when this project becomes operational. GAIL (India) Ltd (the erstwhile Gas Authority of India Ltd), the premier gas transmission and marketing company in the country, has the mandate of creating an infrastructure for sustained development of gas market in the country. GAIL has also expanded into gas processing, petrochemicals, liquefied petroleum gas transmission and telecommunications.

The company has also a presence in power, liquefied natural gas re-gasification, city gas distribution and exploration and production through equity and joint ventures participations. With net turnover of Rs11942 crore ($2.6 billion) and a net profit of Rs 1869 crore ($6 million) for the year 2003-04, GAIL is rated among the top 10 Indian companies in terms of profits and revenue.