Project includes two pipelines




The Cabinet Committee on Economic Affairs has approved capacity expansion of Numaligarh Refinery from 3 Million Metric Tonne Per Annum (MMTPA) to 9 MMTPA.

It 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, said the Cabinet in an announcement on 16 Jan 2019.

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 Government will support the project’s Viability Gap Funding of Rs.1,020 crore.

The expansion of the refinery will meet petroleum products shortages in the North East.

It will also sustain the operations of all North East refineries by augmenting their crude availability.


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