The Cabinet Committee on Economic Affairs approved the revised cost estimates of the Assam Gas Cracker Project to the tune of INR 8920 crore which would be funded by capital subsidy of INR 4,690 crore and debt and equity for INR 2961 crore and INR 1269 crore respectively.

Revised cost estimates of INR 8920 crore is based on the following assumptions
1. 10% IRR
2. Debt-equity ratio-2.33:1
3. Polymer price - INR 67,709 / MT (weighted average)
4. Price of natural gas - INR 4,100 / TSCM
5. Price of naphtha - INR 35, 474 / TSCM
6. Pro rata infusion of equity and capital subsidy before drawdown of debt

In case the planned loans do not materialize, the same would be picked up as additional equity by the promoters. The revised capital subsidy will be sought by the Department of Chemicals and Petrochemicals from the Ministry of Finance / Planning Commission in 2011-12 and 2012-13 by way of additional budgetary support.

The project schedule has also been revised with mechanical completion by July 2013 and commissioning by December 2013.