Numaligarh Refinery Limited (NRL) of Assam is betting big on its expansion plans as the largest public sector unit in North East. The refinery has earmarked an enhanced investment of Rs. 34,000 crore in the next two years to scale up its overall infrastructure.
A senior official of NRL told Business NorthEast, "The proposed investment will be done in next two years to enhance the refining capacity from 3 MT to 9 MT, laying of 1,630 km pipeline from Paradip port in Orissa to Numaligarh in Assam, a petrochemical complex will also be build."
Out of the total investment, Rs. 19,000 crore will be spent on increasing the refining capacity while another Rs. 9000 investment will take place in laying the pipeline and Rs. 6000 crore will be spent on building up the petrochemical complex.
The investment is part of NRL’s mega integrated refinery expansion project from 3MMT per annum to 9 MMT per annum.
The 1,630 km long Paradip-Numaligarh Crude Pipeline (PNCPL), is a crude pipeline originating from Paradip Port in Odisha and traversing through West Bengal, Jharkhand, Bihar, before terminating at its refinery in Numaligarh.
All of these infrastructure enhancements will be completed by the financial year 2024-25.
Notably, the second BJP government headed by chief minister Himanta Biswa Sarma in its first cabinet meeting approved the state’s biggest ever investment worth over Rs 2,000 crore to raise its stake in the NRL. The state expects dividends worth Rs. 900 crore annually from this move.
In April 2022, NRL paid an interim dividend cheque of Rs 95.63 crore to the Assam Government for the financial year 2021-22 for its equity stake of 26 percent in the company.
The second interim dividend amounting to Rs 86.35 crore was paid to the state government on November 29, 2021.
Presently, Oil India holds 69.63 percent, Assam government 26 percent, and EIL 4 percent stakes in NRL.
Numaligarh Refinery Limited was established as a Company on April 22, 1993 by the provisions made in the historic Assam Accord signed on August 15, 1985.
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