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Cabinet nod to Rs 23,000-crore plan to expand Numaligarh Refinery

PW Bureau 

The total expenditure of the project will be financed by a mix of debt, equity and Viability Gap Funding (VGF) Guwahati: The Union Cabinet has given the green light to a Rs 22,594-crore plan to expand Assam’s Numaligarh Refinery (NRL), a move that will increase the refinery’s production by 6 million tons per year. NRL, which is majority-owned by refiner Bharat Petroleum Corporation Ltd (BPCL), will see its production grow from 3 MMTPA to 9 MMTPA. The total expenditure of the project will be financed by a mix of debt, equity and Viability Gap Funding (VGF). “The Cabinet Committee on Economic Affairs, chaired by the 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,” an official release said.
The expansion of the refinery will also meet the deficit of petroleum products in the north-east region of India, the statement added. 
“It involves setting up of a 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 expansion of the refinery will also meet the deficit of petroleum products in the north-east region of India, the statement added. “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.”