Numligarh Refinery to treble capacity to 9 MMTPA
16 Jan 2019
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State-owned Numaligarh Refinery will expand its refining capacity from the current three million metric tonnes per annum (MMTPA) to 9 MMTPA.
The Cabinet Committee on Economic Affairs (CCEA) also approved the setting up of a crude oil pipeline from Paradip to Numaligarh and a product pipeline from Numaligarh to Siliguri.
The project, estimated to cost Rs22,594 crore, is planned to be completed in 48 months, after approval and receipt of statutory clearances.
The total project cost of Rs22,594 crore will be financed by a mix of debt, equity and viability gap funding (VGF). The debt of Rs15,102 crore will be raised by Numaligarh Refinery Ltd (NRL) and apart from its internal accrual of Rs2,307 crore, the promoters, namely, Bharat Petroleum Corporation Ltd, Oil India Ltd and government of Assam will contribute to equity. The project will be supported by VGF of Rs1,020 crore from the Government of India.
The expansion of the refinery will meet the deficit of petroleum products in the North East. It will also sustain the operations of all North East refineries by augmenting their crude availability. It will generate direct and indirect employment in Assam and is a part of the government's Hydrocarbon Vision 2030 for the North East.
