Gas cracker project in crisis again

NEW DELHI, Dec 1: Mounting uncertainties arising from nonchalant attitude of the Central and State government, Reliance Industries Limited (RIL), Oil and Natural Gas Corporation (ONGC) and fresh logjam over additional subsidy obligation has put a question mark over implementation of the multi-crore gas cracker project. Opinion over the gravity of the latest crisis to hit the gas cracker project may differ, but everybody agrees that the project today stands at a critical juncture gasping for life. If the crisis that looms large over the project is again allowed to be mired into bureaucratic wrangling, then it may be shelved even before it gets off ground, experts here believe. An indication of the fate of the gas cracker could be gauged from the hints from those at the top that Assam government is exploring the possibility of setting up an alternative project should the gas cracker project fail to materialise. ?We are not averse to the idea of going for another mega project provided the concessions given to the Assam Accord Projects is restored by the Centre,? said a top State government official. ?Afterall what we are looking for from the gas cracker project is economic development of the State and employment generation. If any other project fulfil these objectives ? why not,? argued the official, adding that the only advantage for the State government with the Reliance Assam Petrochemical Limited (RAPL) project was that message would have gone to the investors that RIL has come to Assam, he asserted. It may be recalled here this is not the first time that State government has raised doubts about the RIL project. Earlier in February, Chief Minister Tarun Gogoi served an ultimatum giving the Petroleum Ministry four months time to resolve the pending issues manly linked to supply of the required feedstock. But it is the first time that Assam government has talked about shelving the gas cracker project. What made Assam government do some hard thinking was the deliberations at the last round of meeting that was attended by at least three Union Ministers ? Chemical and Fertilizer S S Dhindsa, Union Petroleum Minister, Ram Naik and Minister of State for Petroleum Santosh Gangwar and scores of top officials of the two ministries. At the meeting the Petroleum Minister formally announced identification of Indian Oil Corporation (IOC) as the third supplier, which would supply the deficit feedstock of about 50,000 MT. What be added thereafter has left State government officials cold. The Petroleum Ministry, it was revealed, would once again have to approach the Finance Ministry for concurrence to meet the additional subsidy requirement after which they have to move the Union Cabinet for approval. On Thursday, Naik chairing a separate meeting with the MPs belonging to the North Eastern Region said that if would at least take two months for his Ministry to move the Cabinet. The deliberations prompted a disgusted Congress MP Dwijen Sarma to remark at the meeting that gas cracker project would become history and Assam?s children would soon read about it in history books.