New Delhi: Maharatna power PSU Power Finance Corporation (PFC) on Monday signed a pact to provide Rs 1,229 crore term loan to Assam Petrochemicals to implement a 500 tonnes per day methanol plant at Namrup and 200 tonnes per day formalin plant at Boitamari in Assam.

"PFC and APL signed a loan agreement for a term loan of Rs 1229 Crore to support the implementation of a 500 TPD Methanol Plant along with a 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 power PSU said on X (formerly twitter).

The agreement has been signed in the presence of PFC's Chairperson & Managing Director (CMD) Parminder Chopra, Director (Projects) Rajiv Ranjan Jha, Director (Commercial) Manoj Sharma, ED (Projects) HK Das and APL officials including APL's Chairman Bikul Ch. Deka, and Managing Director Rajnesh Gogoi.

The 500 TPD Methanol Plant, including 11 MW CPP, was inaugurated by the Prime Minister on April 14, 2023, on completion.

The project, including the 200 TPD Formalin Plant, is scheduled to commence commercial operation by March 31, 2024.

The APL is a state public sector undertaking of the Government of Assam (GOA), comprising GOA, Assam Industrial Development Corporation (AIDCL); Assam Gas Co Ltd (AGCL) and Oil India.

The APL started its operations in 1976 and has been in the business of selling methanol and formalin since 1989 and 1998, respectively.

Presently, APL has expanded its business to the neighbouring countries -- Bangladesh, Bhutan and Nepal.

The partnership between PFC and APL highlights PFC's continued support and assistance in developing the northeastern region.

(With PTI inputs)

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