10-09-2012

Assam refinery to explore potential markets in neighbouring countries

Given its proximity to countries like Bangladesh, Bhutan and Myanmar, Assam's Numaligarh Refinery Limited (NRL) is now planning to explore potential markets for its products in these countries, its chairman said on Friday. "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 have already been provided in the 12th Five Year Plan (2012-17) outlay," NRL chairman R.K. Singh said at the annual general meeting of the refinery here. This is part of a major capacity expansion plan for the refinery, he added. The NRL registered a net profit of Rs.183.70 crore and has declared a 10 per cent dividend for 2011-12. Singh also said that the NRL is also looking at the possibility of diversifying into sectors with promising potential such as power generation, pipelines, exploration and production. "Realizing the need for long term sustenance and growth, NRL has planned for expansion of refining capacity from 3.0 MMTPA to 8.0/9.0 MMTPA together with the option of sourcing and transporting the additional crude oil through a pipeline."

He said that during 2011-12, the refinery processed highest ever quantity of crude oil of 2,825 TMT against 2,250 TMT in the previous year, achieving an increase of 25.6 per cent. "Total sales volume of NRL also grew by 27.7 per cent to 2728 TMT compared to 2137 TMT in the previous year," he said. Singh, however, said that profitability was affected primarily due to the negative impact of duty restructuring in June 2011. NRL was set up at Numaligarh in Golaghat district of Assam in accordance with the provisions made in the historic Assam Accord and it has been conceived as a vehicle for speedy industrial and economic development of the region. The refinery was dedicated to the nation by then Prime Minister Atal Bihari Vajpayee on July 9, 1999. The product range of the refinery now includes cooking gas, naphtha, motor spirit, aviation turbine fuel, superior kerosene oil, high speed diesel, raw petroleum coke, calcined petroleum coke and sulphur.