NRL embarks on Rs 700-cr wax project

Assam-based Numaligarh Refinery Limited (NRL) has embarked on an ambitious Rs700-crore wax project for production of paraffin wax and microcrystalline wax.   Board approval for the project has already been obtained and the execution period will be around three-and-a-half years, a company statement said.  

As per a report by an independent financial consultant, PriceWaterHouse Coopers, the viability of this project is fully established with a high IRR(Internal Rate of Return), supported by favourable supply-demand scenario with demand of paraffin wax projected around 230 TMT (thousand metric tonnes) by 2011-12 against the domestic production of around 64 TMT. Being a high value product, wax production will contribute in enhancing the refinery’s profitability apart from rationalising its product slate which presently is overwhelmingly dependent on high speed diesel (HSD).  

The project will use the best of technologies from foreign as well as indigenous licensors. This, coupled with the inherent strength of Assam crude known to be intrinsically rich in wax content, will ensure production of high and superior quality waxes, which would then position NRL in the higher end of the market fetching premium prices, the company statement added.