BPCL awaits Centre’s nod for Numaligarh refinery expansion

Plan includes a ‘friendship’ 135-km petroleum pipeline for exports to Bangladesh

Published - September 20, 2018 10:21 pm IST - MUMBAI

Fuel guzzler: A double-digit rise in consumption in the northeast spurred the ₹22,000-cr. expansion.

Fuel guzzler: A double-digit rise in consumption in the northeast spurred the ₹22,000-cr. expansion.

State-owned Bharat Petroleum Corporation Limited (BPCL) has sought the government’s nod for threefold expansion of its Numaligarh refinery in northeast from 3 million tonnes per annum (mtpa) to 9 mtpa at a cost of ₹22,000 crore.

Excise concession

The company has sought capital subsidy and excise concession from the government for the refinery project. The double-digit rise in fuel consumption in the northeast, one of the highest in the country, has propelled this expansion.

“Numaligarh refinery is awaiting government nod as we are looking for some incentives. The project cost is around ₹22,000 crore. northeast is strategic for the government. We are ready and are hoping to get government approval any time now so that we can start work,” R. Ramachandran, BPCL Director - Refinery, told The Hindu . The company also plans to export products to Bangladesh, Nepal and Myanmar with the refinery expansion. Numaligarh refinery is pursuing plans to lay a 135-km petroleum product pipeline from its terminal at Siliguri in West Bengal to Parbatipur in Bangladesh.

“We are laying a friendship pipeline to Bangladesh and plan to export our products to Bangladesh through this pipeline. Bangladesh will be a big market for us besides catering to the northeast, where demand in growing in double digits. We are also planning to export products to Nepal and Myanmar,” Mr. Ramachandran said. The company plans to procure crude from Paradip in Odisha, where IOCL has a refinery.

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