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Assam Cracker Project's Costs Escalate, Completion Delayed

12:50 PM MST | November 17, 2011 | Natasha Alperowicz

India’s Cabinet Committee on Economic Affairs (New Delhi), headed by Prime Minister Manmohan Singh, on Wednesday approved a revised cost estimate for a previously announced Assam gas cracker project. Costs have risen by 63% to Rs89.2 billion ($1.75 billion), since the cabinet approved it in April 2006. The petchem project, which  will use local feedstocks, is well below worldscale. It has been hit by cost overruns due to time escalation, increase in infrastructure requirements and construction costs, labor unrest, prolonged monsoon and inadequate...

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