Realizing the need for long term sustenance and growth, a massive expansion plan is on the cards for Assam-based Numaligarh Refinery Ltd (NRL), a subsidiary of Bharat Petroleum Corporation Ltd (BPCL).
The refinery is planning expansion of its refining capacity from 3.0 million metric tonnes per annum (MMTPA) to 8-9 MMTPA, together with the option of sourcing and transporting the additional crude oil through a pipeline.
Besides, the NRL is also exploring possibilities for diversification into sectors with “promising potential” such as power generation, pipelines, exploration and production.
“The refinery’s location in close proximity to countries like Bangladesh, Bhutan and Myanmar presents another opportunity of natural markets for its products. For all such project activities an amount of Rs 8,955 crore has been earmarked for the 12th Five Year Plan,” company sources said. The company, had in 2011, signed a memorandum of understanding (MoU) with Assam Power Generation Co Ltd (APGCL) for development and implementation of new power projects in the state.
The Refinery is presently implementing several value added projects to improve profitability. The Rs. 577 crore Wax project, which would enable production of high value low volume Paraffin and Micro-Crystalline Wax utilising inherent properties of North East Crude, is scheduled for completion by December 2013.
The Naphtha Splitter Project involving a project cost Rs 87 crore has been taken up for production of 160 TMT annually of petrochemical grade Naphtha, which would be supplied as feedstock to the upcoming Assam Gas Cracker Project. The project is targeted for completion in third quarter of 2012-13.
At the recently held Annual General Meeting (AGM) of the company, NRL A declared a dividend of 10 per cent for the year 2011-12 on the paid up share capital. A company press release further stated that NRL achieved its best ever physical performance in the last fiscal. Besides highest ever processing of 2,825 TMT crude against 2,250 TMT in the previous year, the distillate yield (yield of high value liquid petroleum products) of NRL during the year was recorded at 91.52 per cent, which was the highest in the Indian refining industry.
Numaligarh Refinery’s net worth as on March 31, 2012 stands at Rs 2,699.26 crore compared to Rs 2,601.06 crore at the end of the previous year. NRL, during 2011-12, recorded the highest ever sales turnover of Rs 14,027.75 crore recording a growth of 56.4 per cent over previous year’s turnover of Rs 8,972.19 crore.The Company’s Profit Before Tax (PBT) was recorded at Rs 287.46 crore and Net profit at Rs 183.70 crore in the last fiscal.
NRL was set up at Numaligarh in Upper Assam’s Golaghat district in accordance with the provisions made in the historic Assam Accord signed on 15th August 1985, which then brought an end to six years of violent student uprising in Assam against illegal infiltration from Bangladesh. BPCL is the majority stakeholder in NRL with 61.65 per cent stake, followed by OIL (26 per cent stake) and Assam government (12.35 per cent stake).
