Union Cabinet clears Numaligarh Refinery Expansion Proposal Highest ever investment in North East India at Rs. 22,594 Crore

abarrelfullabarrelfull wrote on 22 Jan 2019 08:47

Giving a definitive push to its North East development agenda, the Union Cabinet today cleared the proposal for capacity expansion of Numaligarh Refinery from its existing 3 Million Metric Tonnes per annum (MMTPA) to 9 MMTPA at an estimated investment of Rs. 22,594 Crore, the highest so far in NE India. The project completion time would be 48 months from the zero date. In addition to capacity expansion, the project would also include a 9 MMTPA, 1,398 KM Crude oil pipeline from Paradip to Numaligarh and a 6 MMTPA, 654 KM Product pipeline from Numaligarh to Siliguri.

The Cabinet approval provides for granting Capital subsidy to the tune of Rs. 1,020 Crore and continuation of 50 % Excise duty benefit to the Project for a period of 15 years post commissioning.

This mega project would usher Assam and the NE region in a new era of economic and industrial development by boosting large scale investment opportunities and creating robust direct and indirect employment opportunities. An estimated 8,000 people would be involved in executing the project during its construction. The project would also contribute significantly in meet the growing demand of petroleum products in North East and Eastern India and ensure crude oil security for all the four Assam Refineries. It would additionally act as a fulcrum and prime mover for other projects envisaged in the NE Hydrocarbon Vision 2030. Auguring well with Act East policy of Govt. of India, it will enhance export of petroleum products to India's geographically contiguous neighbor's viz. Myanmar, Bhutan and Bangladesh.

'This is a much welcome economic policy decision at the highest level based on the recommendation of the Public Investment Board. Other that elevating the stature of NRL as a front ranking oil and gas company in the national and global scenario, the project will serve to accelerate the economic growth of the region, which is inextricably intertwined with the overall development indices of the country. The crude oil pipeline envisaged would ensure sustenance of all the four Assam Refineries which have been facing crude oil shortages in the last two decades', said MD NRL Mr. S.K. Barua on this landmark development.

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