New Delhi, Jan 16: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval to the project for capacity expansion of Numaligarh Refinery from 3 Million Metric Tonne Per Annum(MMTPA) to 9 MMTPA.
Railway Minister Piyush Goyal in a Cabinet briefing here said, '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.'
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 project will be supported by Viability Gap Funding of Rs1,020 crore from the Union Government, Mr Goyal added.The expansion of the refinery will meet the deficit of petroleum products in the North East. It will also sustain the operations of all North East refineries by augmenting their crude availability. It will generate direct and indirect employment in Assam and is a part of the Government's Hydrocarbon Vision 2030 for the North East. (UNI)