IOCL to enhance fuel operational efficiency in Assam: MP Rwngwra Narzary

KOKRAJHAR: Rajya Sabha MP from BTC region Rwngwra Narzary, who raised several questions on the projects and enhancement of fuel operational capacity and Indian Oil Corporation Limited (IOCL)’s expansion plan in Assam refineries, said the ministry of petroleum and natural gas, Government of India has planned to enhance the fuel operational efficiency in Assam.

Narzary, who is also working president of UPPL, raised questions regarding IOCL’s ongoing investment in Assam refineries in the ongoing Parliament session on Tuesday. He sought details thereof including capital outlay for Assam; whether Government was aware of IOCL’s ongoing investment in Assam refineries, details of, whether Government is aware that Assam refineries are sub-economic size and surviving on excise duty benefit since 2015, if so, details thereof, and the plan to make Assam refineries economically viable.

Responding to the questions, the Minister of State in the Ministry of Petroleum & Natural gas, Rameswar Teli stated that expansion of IOCL’s Bongaigaon Refinery from 2.35 to 2.7 MMTPA involving investment of Rs. 2,178 crores had been completed in 2020-21. The capital expenditure for refinery expansion projects of IOCL in Assam in the last three years was Rs. 644.17 crore in 2020-21, Rs. 229.59 crore in 2021-22, and Rs. 208.01 crore in 2022-23. He added that investments in setting up of refineries, refinery expansion, and upgradation are made as per overall national requirements and are not linked to the profitability of refinery operations from a single refinery/refinery in a single state.

On the questions regarding IOCL’s ongoing investment in Assam refineries, minister Teli stated that IOCL was executing capacity expansion of its various refineries in the country. By 2028, it would expand capacity by 17.85 Million Metric Tonnes Per Annum (MMTPA) involving an investment of Rs. 69,591 crores. Out of this, investment in oil refineries of Indian Oil Corporation Ltd. (IOCL) in Assam during the next 5 years would be in excess of Rs.1136 crores, thereby increasing the overall capacity from 4.35 MMTPA to 4.90 MMTPA.

Teli also mentioned that refineries in Assam were relatively smaller as compared to refineries elsewhere in the country i.e., their capacity ranges from 0.65 MMTPA to 3 MMTPA. Excise duty benefit has been extended to refineries in Assam since 1997. In addition, a new refinery was set up in the year 2000 by Bharat Petroleum Corporation Ltd. (BPCL) at Numaligarh with a capacity of 3 MMTPA. Capacity expansion of this refinery from 3 MMTPA to 9 MMTPA is also under progress, he said, adding that various other measures were being exercised continuously for maximizing operational efficiency, reduction of fuel and loss, increase plant availability, and reducing operational cost.

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