Cabinet approves Numaligarh Refinery expansion to 9 mtpa.

The Cabinet Committee on Economic Affairs has approved the tripling of Numaligarh Refinery’s capacity. An official statement said the capacity will be hiked from 3 million tonnes per annum (mtpa) to 9 mtpa.

The Cabinet has also approved setting up of a crude oil pipeline from Paradip to Numaligarh and a product pipeline from Numaligarh to Siliguri.

The total project cost is pegged at Rs. 22,594 crore and it will be financed by a mix of debt, equity and a Viability Gap Fund (VGF).

Numaligarh Refinery Ltd. (NRL) will raise a debt of Rs. 15,102 crore and apart from internal accruals of Rs. 2,307 crore, the promoters (Bharat Petroleum Corporation Ltd. and Oil India Ltd) and the Assam government will contribute equity, the statement said.

The project will be supported by a VGF of Rs. 1,020 crore from the Centre. It is expected to be completed within 48 months, after approval and receipt of statutory clearances.

“The expansion of the refinery will meet the deficit of petroleum products in the North-East,” the statement added.

In another decision, the Cabinet has approved regularisation of pay scales of below Board-Level Executives in four hydropower central public sector enterprises (CPSEs) with effect from January 1, 1997.

The CPSEs are National Hydroelectric Power Corporation Ltd (NHPC), North East Electric Power Corporation (NEEPCO), THDC India Ltd and Satluj Jal Vidhyut Nigam Ltd. (SJVN).

“After approval, the pay scales adopted by Hydro CPSEs consequent upon the order of the Ministry of Power dated April 4, 2006 and September 1, 2006 shall be regularised,” an official statement said.

According to the Centre, about 5,254 executives of Hydro CPSEs enrolled before January 1, 2007 will benefit from this approval. Expenditure of Rs. 323 crore will be incurred on the regularisation of pay scales.

Anomalies have existed in the pay scales of executives of NHPC, NEEPCO, THDCIL and SJVNL since January 1, 1997 due to revision of pay scales of the unionised category of workmen/ non-executives in line with the NTPC/ oil sector within the organisations. The pay scales of workmen and supervisors were higher than the pay scales of executives in the E-1 grade,” the official statement said.

HBL