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From a Correspondent
New Delhi: In a significant development, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given its approval to the project for capacity expansion of Numaligarh Refinery from 3 MMTPA (Million Metric Tonne Per Annum) to 9 MMTPA.
The move involves setting up of crude oil pipeline from Paradip to Numaligarh and product pipeline from Numaligarh to Siliguri at a cost of Rs 22,594 crore. The project is to be completed within a period of 48 months, after approval and receipt of statutory clearances.
The total project cost of Rs 22,594 crore will be financed by a mix of debt, equity and Viability Gap Funding (VGF). The debt of Rs.15,102 crore will be raised by Numaligarh Refinery Ltd (NRL) and apart from its internal accrual of Rs. 2,307 crore, the promoters, namely Bharat Petroleum Corporation Ltd, Oil India Ltd & Government of Assam (GoA) will contribute to equity. The project will be supported by Viability Gap Funding of Rs.1,020 crore from the Government of India.
The expansion of the refinery will meet the deficit of petroleum products in the Northeast. It will also sustain the operations of all Northeast 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 Northeast.
Chief Minister Sarbananda Sonowal hailed Union Cabinet’s nod for Numaligarh Refinery Expansion proposal which paved the way for pumping in the highest-ever investment in the Northeast to the tune of Rs. 22,594 crore. He also attributed this development to Prime Minister Narendra Modi’s love for the region which, according to him, would give a definitive push to his Northeast development agenda and successful manifestation of one of the clauses of Assam Accord.
In a statement here today, Chief Minister Sonowal said, “I whole heartedly express my gratitude to Prime Minister Narendra Modi and his Cabinet for clearing the highest-ever investment proposal in the Northeast in the last 70 years. As a result of this Cabinet decision, the Assam Accord which was signed way back in 1985 has received a shot in its arm”. With this decision Numaligarh Refinery Limited, which is one of the offshoots of the Assam Accord, will be able to take the dreams of the people involved in Assam Agitation closer to fulfillment.
He also said that the Union Cabinet’s decision to pump in Rs. 22,594 crore in NRL would lead to the capacity expansion of the refinery from its existing three million metric tones (MMTPA) per annum to 9 MMTPA. He also said that the mega project would usher Assam and North East in a new era of economic and industrial development by boosting large investment opportunities and creating robust direct and indirect employment opportunities of the local.
Chief Minister Sonowal also said that the expansion project would contribute significantly in meeting the growing demands of petroleum products in North East and Eastern India and ensure crude oil security. It would also act as a prime mover for other projects envisaged in the NE Hydrocarbon Vision 2030. It will also augur well with Act East Policy and will enhance export of petroleum products to the neighbouring countries such as Myanmar, Bhutan and Bangladesh.
The Chief Minister also said that the investment is the result of the Advantaged Assam: Global Investors’ Summit held in February last year which made the investment climate of the state salubrious. The investment would also fulfill the interests of the large section of the people of the state. He also said that the expansion proposal will help in stimulating investment and act as a catalyst for development of the region. It would also provide a kick-start to development of North East as a part of Act East Policy.
It may be noted that under the expansion proposal 1398 km Crude oil pipeline from Paradip to Numalligarh and 6 MMTPA, 654 km product pipeline from Numaligarh to Siliguri will also be materialized. This project is a part of Govt. of India’s Hydrocarbon Vision 2030 for the North East.