BCPL in Deep Waters with Rs 500 Cr Annual Loss; Assam CM Calls for Action

The Brahmaputra Cracker and Polymer Limited (BCPL), also known as the Assam Gas Cracker Project, is facing a severe financial crisis, raising concerns about its future sustainability. Chief Minister Himanta Biswa Sarma, after reviewing BCPL's performance at its office in Lepetkata, acknowledged the project's precarious financial position and stressed the urgent need for diversification and development to ensure its viability.

"After assessing BCPL's performance, we have learned that it is facing significant challenges. In the coming days, we will explore ways to develop and diversify BCPL to make it sustainable," Sarma stated.

Accompanied by Industries and Commerce Minister Bimal Borah and Power Minister Prasanta Phukan, the Chief Minister inspected the petrochemical complex and highlighted BCPL's recurring financial losses. Over the past two years, the project has suffered annual losses of approximately ₹500 crore. Sarma pointed out that BCPL is heavily dependent on bank loans, warning that continued borrowing could lead to even greater financial difficulties in the future.

The Chief Minister further revealed that discussions among the project's promoters are ongoing to address the crisis. He emphasized that while the Government of India may consider extending the feedstock subsidy for another decade, this measure alone is not a sustainable solution.

"A temporary extension of the feedstock subsidy cannot sustain the project indefinitely. We must formulate a long-term strategy to ensure BCPL's survival," Sarma added.

I visited the @BCPLOfficial facility today, a long standing demand of the people of Assam which was dedicated by Adarniya @narendramodi Ji in 2016.

The plant operates at 107% efficiency and is a testament of world class skilled workforce and Ease of Doing Business in Assam.

1/2 pic.twitter.com/sAyRMhcg0N

— Himanta Biswa Sarma (@himantabiswa) March 22, 2025

The Assam Gas Cracker Project, a significant industrial initiative originating from the historic Assam Accord, received government approval on April 18, 2006, with an initial estimated cost of ₹5,460.61 crore. However, following three revisions, the final project cost escalated to ₹9,965 crore. BCPL was incorporated on January 8, 2007, to execute the project, with GAIL holding a 70% equity stake, while Oil India Limited, Numaligarh Refinery Limited, and the Government of Assam equally shared the remaining 30%.

Envisioned as a catalyst for socio-economic development in the region, BCPL was expected to generate employment and foster industrial growth through the establishment of downstream industries. However, the current financial distress has cast a shadow over these expectations, prompting urgent deliberations on sustainable recovery strategies.