Numaligarh Refinery Ltd to build 100-km pipeline from India to Bangladesh for Rs 150 Crore

GUWAHATI: Assam-based Numaligarh Refinery Ltd (NRL) will construct a 100-km long pipeline from India to Bangladesh for exporting high speed diesel (HSD). The pipeline will connect Siliguri in West Bengal to Parbatipur in Bangladesh and will entail an investment of Rs 150 crore. It will connect an existing pipeline in Siliguri which extends till Numaligarh. NRL is in talk with Bangladesh for exporting 10,000 million tonnes (MT) of HSD through waterways.

NRL Managing Director Dipak Chakravarty told ET: "We are in talk with Bangladesh for export of 10,000 MT of HSD. The value of this will be around Rs 35 crore." Adding he said: "A team from the company has visited Bangladesh. We are waiting for response from the Bangladesh side." Sources added, "A proposal has already been made to the Bangladesh government. As India-Bangladesh relationship has witnessed significant improvement under the new regime of prime minister Sheikh Hasina we are hopeful that this project will see light of the day."

NRL produces around 1.6 MT of HSD annually out of which 20% is consumed in Northeast and rest sent to other parts of the country. In 2007, NRL has exported 4,800 MT of diesel to neighbouring country using the waterways. The consignment was sent from Silghat port in Naogaon District of Assam to Baghabari in Northern Bangladesh. The value of the export was around Rs 15 crore. Bangladesh has shortfall of 1.5 MT of petroleum product.

Sources in NRL added, "Last year, we did not pursue for the exports as many refineries in the country were on up gradation mode for Euro-IV HSD. However now we can comfortably export." Bharat Petroleum Corporation holds a 61.65% stake in the NRL, while Oil India Limited (OIL) has a 26%stake. The Government of Assam has 12.35% stake in the refinery. NRL has marketing terminal at Siliguri. NRL which was set up as a result of historic Assam Accord is looking to augment its capacity from 3 MMTPA to 4 MMTPA. Chakravarty added, "Feasibility study for the capacity augmentation is already done, it will require an investment of Rs 2,000 crore. At present, we have zero debt. Our product includes LPG, Naphtha, Motor Spirit (MS), Aviation Turbine Fuel (ATF) Superior Kerosene Oil (SKO), HSD, Raw Petroleum Coke ( RPC )) Calcined Petroleum Coke and Sulphur."