The Power Finance Corporation (PFC), a public sector unit, will provide a term loan of Rs 1,229 crore to Assam Petrochemicals (APL) for the construction of a methanol and formalin plant in Assam.
This financial support aims to facilitate the establishment of a 500-tonne-per-day methanol plant in Namrup in Upper Assam and a 200-tonne-per-day formalin plant in Boitamari, in Lower Assam.
In an official statement, the PFC and the APL announced the signing of a loan agreement to enable the realization of these projects.
The agreement includes the construction of a 500 TPD Methanol Plant, coupled with an 11 MW Captive Power Plant (CPP) in Namrup, and a 200 TPD Formalin Plant with a captive 0.90 MW power plant in Boitamari, Assam.
The signing ceremony witnessed the presence of key figures from both organizations, including PFC’s Chairperson & Managing Director (CMD), Parminder Chopra, and various directors and officials from APL.
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, encompassing the 200 TPD Formalin Plant, will commence commercial operations by March 31, 2024.