i) Brahmaputra Cracker & Polymer Limited (Assam Gas Cracker Project)

A joint venture company, M/s Brahmaputra Cracker & Polymer Limited (BCPL) was incorporated on 08.01.2007 for implementing the Assam Gas Cracker Project in Dibrugarh district of Assam. NRL has 10% equity participation in this joint venture along with M/s GAIL (70%), M/s OIL (10%) and Government of Assam (10%). NRL’s equity contribution in the joint venture involving a project cost of Rs. 5461 crores is estimated at Rs. 110 crores. The Gas Cracker project is scheduled for completion by April 2012.

M/s Oil India Limited has signed an agreement for supplying 1.0 MMSCMD of Natural Gas to Numaligarh Refinery for substitution of Naphtha as fuel in the Captive Power plant and as fuel and feed in the Hydrogen Plant. A joint venture company, M/s DNP Limited was incorporated on 15.06.2007 for implementing a Natural Gas Pipeline Project for transporting Natural Gas from Duliajan to Numaligarh Refinery at an approved project cost of Rs. 346.93 crores. NRL has 26% equity participation in this joint venture along with M/s Assam Gas Company Limited (51%) and M/s Oil India Limited (23%). Substitution of Naphtha by Natural Gas in Numaligarh Refinery would improve the Company’s refining margin, contributing significantly to the Company’s profitability. In addition, Natural Gas utilization would generate Carbon Credits under the Clean Development Mechanism (CDM) programme of United Nations Framework Convention on Climate Change (UNFCCC). In the pipeline project, NRL’s has paid for its entire equity contribution amounting to Rs. 35.08 crores. The Natural Gas pipeline is expected to be completed in the fourth quarter of 2010-11.