Numaligarh Refinery Gains Authority to Invest Rs 1,000 Crore Without Approval

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Saturday, July 08, 2023
Numaligarh Refinery Gains Authority to Invest Rs 1,000 Crore Without Approval

Numaligarh Refinery Limited Elevated to 'Schedule A' Category by Central Government

Numaligarh Refinery Limited Elevated to 'Schedule A' Category by Indian Government

 GUWAHATI: Guwahati witnessed a historic milestone on July 7, 2023, as the Numaligarh Refinery Limited (NRL) in Assam received a significant promotion from the 'Schedule B' to 'Schedule A' category of Central Public Sector Enterprises, courtesy of the Indian government. The Ministry of Petroleum and Natural Gas formally announced this momentous upgrade on July 4, 2023.

This transition to the esteemed 'Schedule A' status empowers NRL to strive for the prestigious Navratna status, which bestows greater financial autonomy and decision-making capabilities upon the refinery. With this newfound status, NRL can now undertake more expansive and intricate projects while swiftly forging joint ventures, strategic partnerships, and special-purpose vehicles to drive strategic growth.

As a Navratna company, NRL now holds the authority to invest up to Rs 1,000 crore without seeking approval from the central government. It is worth noting that the Assam government possesses a 26 percent stake in NRL.

NRL has solidified its position as one of the top 20 Central Public Sector Enterprises in India, excelling in terms of sales revenue and profitability. Setting itself apart from other Indian PSU refineries, NRL in Assam stands as a high-performing facility. Additionally, NRL has made forays into international markets, commencing the export of petroleum products to neighboring countries, aligning itself with the government's Act East Policy.

As the largest refinery in northeastern India, NRL currently operates with a capacity of 3 million metric tonnes per annum (MMTPA). Moreover, the refinery is actively implementing a massive expansion project, aiming to triple its refining capacity to 9 MMTPA. Simultaneously, NRL is constructing a trans-national crude oil pipeline from Paradip in Odisha.

With ongoing projects that amount to investments of approximately Rs 35,000 crores in the region, NRL is rightly recognized as one of the largest investments in the oil and gas sector.

Congratulating NRL on this significant achievement, Assam Chief Minister Himanta Biswa Sarma emphasized that this recognition serves as a resounding endorsement of the Assam Government's decision to enhance its shareholding in NRL. NRL's world-class infrastructure positions it as a prominent refining destination, propelling its rapid emergence in the industry.