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Numaligarh Refinery

Numaligarh Refinery Limited (NRL) is a oil refinery situated in Numaligarh, , , , operating as a of Limited with a current crude processing capacity of 3 million metric tonnes per annum (MMTPA). It primarily processes crude oil to produce essential petroleum products, including liquefied petroleum gas (LPG), motor spirit (MS), high-speed diesel (HSD), aviation turbine fuel (ATF), and , serving markets in northeastern and beyond. As a Miniratna Category-I under the administrative of the Ministry of Petroleum and Natural Gas, , NRL plays a vital role in enhancing and in the region. The refinery's origins trace back to the Assam Accord of 1985, which envisioned a facility to utilize local crude resources and promote industrial growth in . Incorporated in 1999 as a between Corporation Limited (BPCL) and the , NRL commenced commercial production in April 2000 with its initial 3 MMTPA . Ownership evolved significantly in March 2021 when Oil India Limited acquired a 69.63% stake, making NRL its subsidiary, while the retains 26% and Limited holds 4.37%. Over the years, NRL has achieved consistent operational excellence, processing 2,510 thousand metric tonnes (TMT) of crude in FY 2023-24—comprising 2,458 TMT domestic and 52 TMT imported—at 100% for 10 months, yielding a gross refinery margin of $13.17 per barrel. Currently, NRL is executing the ambitious Numaligarh Refinery Expansion Project (NREP), valued at approximately ₹28,000 (with estimates revised upward to ₹41,100 as of August 2025), to triple its to 9 MMTPA by December 2025, with significant progress as of November 2025. This integrated initiative includes adding a 6 MMTPA unit, a 1,635 km Paradip-Numaligarh Crude Oil (PNCPL) for imported crude evacuation, a 360 kilotonnes per annum (KTPA) plant, a crude import terminal at Paradip, and a 2.4 KTPA project to support sustainable operations. Complementary , such as the upgraded Numaligarh-Siliguri Product (completed in October 2025, boosting from 1.77 MMTPA to 5.50 MMTPA) and the India-Bangladesh Friendship (commissioned in March 2023), enhances product distribution to neighboring regions. In FY 2023-24, these efforts contributed to a revenue of ₹23,731 and a profit after tax of ₹2,160 , underscoring NRL's strategic importance in India's refining landscape.

History

Establishment

The Numaligarh Refinery originated as a key commitment under the historic of 1985, signed on August 15, 1985, between the and the to promote and industrial growth in through public sector initiatives. This accord emphasized the establishment of a in the region to harness local resources and foster regional self-reliance, with the project conceptualized in the late as part of broader efforts to address socio-economic grievances in . In fulfillment of these provisions, Numaligarh Refinery Limited (NRL) was incorporated on April 22, 1993, as a undertaking initially as a with Corporation Limited (BPCL) holding the majority stake (61.65%), Oil India Limited (OIL) at 26%, and the at 12.35%. The , through the of and , approved the project in the early 1990s, while the played a crucial role in land acquisition, issuing notifications under the Land Acquisition Act as early as 1992 to secure approximately 500 hectares in for the facility. Construction commenced shortly after incorporation in 1993 and was completed by 1999, with an initial investment of approximately Rs. 2,715 crore funded primarily by BPCL and government equity. Commercial production at the refinery began on October 1, 2000, with a design capacity of 3 million metric tonnes per annum (MMTPA), marking the operationalization of the long-pending initiative. Today, following a transition in 2021, NRL operates as a of Limited while retaining its status.

Key Milestones

Following the commencement of commercial production in October 2000, Numaligarh Refinery Limited (NRL) demonstrated improving financial performance, recording a profit after tax of Rs 122.98 in FY 2001-02. NRL's integration into India's national oil security framework was solidified through its reliance on crude oil sourced from OIL's fields in Assam, which supplied a substantial portion of the refinery's feedstock and supported regional energy self-sufficiency. This linkage contributed to broader national goals by reducing import dependency for northeastern . In March 2021, BPCL divested its 61.65% stake in NRL to a led by (acquiring 54.16%) and Limited (4.4%), with the increasing its holding to 26%, making the majority owner with 69.63% and establishing NRL as its . In 2013, NRL signed Memorandums of Understanding (MoUs) with Company Limited for the import of crude oil and (LPG), and with the for utilizing refinery by-products like as fuel in production. These agreements laid foundational and resource-sharing frameworks essential for future operational enhancements.

Facilities and Infrastructure

Location

The Numaligarh Refinery is situated in Morangi village within , , , at coordinates approximately 26°35′N 93°47′E. It lies about 26 kilometers from town and is positioned near the Dhansiri River, roughly 6 kilometers away by aerial distance, which contributes to the region's hydrological features. This location in places the refinery in a strategically important area for accessing crude oil resources from Assam's oil fields, facilitated by the surrounding of rolling tea estates and forested hills. The refinery is approximately 38 kilometers from , a renowned for its , underscoring the area's ecological significance amid industrial development. Access to the site is supported by key infrastructure, including National Highway 37 (now partially redesignated as NH-715), which connects Numaligarh to major cities like (about 250 kilometers west) and (around 50 kilometers east). Additionally, the Numaligarh railway station provides rail connectivity, with the nearest major junction at Furkating, 35 kilometers away. Associated with the refinery is the Numaligarh Refinery Township, developed as a dedicated for employees and recognized as a in . Spanning about 4.41 square kilometers, the township had a population of 2,318 as per the 2011 Census, with a of around 526 persons per square kilometer, reflecting its role in supporting the refinery's operations. The location's proximity to protected areas like Kaziranga introduces environmental sensitivities that influence site planning and conservation efforts.

Refining Units and Processes

The Numaligarh Refinery features a suite of integrated refining units designed to process light and medium crude oils into various fractions, emphasizing conversion for high-value products. Key units include the Crude Distillation Unit (CDU), which serves as the primary processing stage, along with the Vacuum Distillation Unit (VDU), Diesel Hydrotreating Unit (DHDT), (FCC) unit, full conversion Hydrocracker, , and Sulfur Recovery Unit (SRU). The DHDT employs hydrotreating licensed from UOP LLC, , to reduce sulfur content in diesel streams, while the FCC unit, based on technology from Lummus Technology LLC, , cracks heavy hydrocarbons into lighter fractions like . The Hydrocracker upgrades vacuum gas oil and other heavy residues into middle distillates, and the handles the heaviest residues to produce lighter products and . The SRU, engineered by Engineers India Limited, recovers from acid gases generated across the refinery. The core refining process begins with crude oil fractionation in the CDU, where atmospheric distillation separates the feed into , , , and atmospheric residue streams at the original of 3 million metric tons per annum (MMTPA). The atmospheric residue is then routed to the VDU for further to yield vacuum gas oil and vacuum residue, which feed downstream conversion units. Conversion occurs primarily through the Hydrocracker (1.45 MMTPA ) and FCC unit, transforming heavy feeds into high-value petrol and precursors, with hydrotreating in the DHDT ensuring low-sulfur specifications by removing impurities via addition. Residues from these processes are managed in the (0.306 MMTPA ), while for hydrotreating and cracking is supplied by the Hydrogen Generation Unit. The SRU captures over 96% of , minimizing emissions. Installed capacities for primary units reflect the refinery's pre-expansion configuration: CDU at 3 MMTPA, Hydrocracker at 1.45 MMTPA, and at 0.306 MMTPA, supporting an overall distillate yield of approximately 86%. As part of the ongoing expansion to 9 MMTPA, which reached over 85% progress as of November 2025, upgrades to units like the SRU incorporate a Tail Gas Treating Unit to achieve 99.9% recovery efficiency. Safety and quality control are integral, with the refinery holding ISO 9001 certification for , ISO 14001 for environmental management, and for occupational health and safety. Emission controls include continuous stack monitoring for , , , and , alongside energy-efficient technologies like plate-type heat exchangers in the SRU to reduce fuel consumption. Regular safety audits, HAZOP studies, and mock drills ensure operational integrity, contributing to a specific energy consumption of 61.57 million BTU per normalized barrel as of FY 2023-24, below the targeted 61.7.

Ownership and Management

Ownership Structure

Numaligarh Refinery Limited (NRL) operates as a majority-owned of Oil India Limited (OIL), which holds 69.63% of its equity as of May 31, 2024. The maintains a significant stake of 26%, while Engineers India Limited (EIL) owns the remaining 4.37%, ensuring NRL's status as a undertaking with diverse governmental involvement. This structure reflects a strategic alignment with national energy policies, placing NRL under the administrative oversight of the Ministry of Petroleum and Natural Gas, , which supervises OIL as its parent entity. The board of directors at NRL consists of seven members, including representatives nominated by , the , and the , to facilitate balanced decision-making and regional interests. This composition underscores the refinery's integrated governance model, where key appointments ensure alignment with both corporate objectives and mandates. As of March 2024, the board included a chairman, managing , , , and three part-time ex-officio directors, with two independent directors. Historically, NRL's ownership transitioned from , which held a 61.65% stake until 2021, to the current framework through a process initiated to preserve its public sector character in line with commitments under the 1985 . In March 2021, BPCL sold its entire holding to a comprising OIL, EIL, and the via a share purchase agreement, elevating OIL's pre-existing 26% stake to a controlling and averting concerns in the region. This shift, valued at approximately ₹9,876 crore, reinforced NRL's role in Assam's hydrocarbon ecosystem while upholding the Accord's vision for a state-centric public refinery.

Workforce and Governance

Numaligarh Refinery Limited (NRL) maintains a of approximately 1,061 permanent employees as of June 2025, comprising technical executives, administrative staff, and non-management workmen, with a substantial contingent of contract staff supporting day-to-day operations and expansion activities. This structure reflects the refinery's status as a of Limited (OIL), which oversees key appointments. The governance framework is headed by a Chairman and Managing Director appointed by , ensuring alignment with parent company objectives, alongside a board of seven directors including whole-time, independent, and part-time ex-officio members. Specialized committees provide oversight: the monitors financial reporting and internal controls (meeting 9 times in 2023-24); the CSR and Committee, chaired by an , directs social and environmental initiatives (meeting 6 times in 2023-24); and the Committee addresses safety protocols and operational hazards. These bodies facilitate compliance with standards and strategic decision-making. Employee development is supported through comprehensive programs, including internal sessions, external courses at institutions like IIMs and IITs, and specialized safety using AR/VR tools, totaling 2,434 man-days in 2019-20. The NRL Training Institute at serves as a key facility for skill-building in refining processes and vocational trades, contributing to workforce competency in a high-risk industry. Labor relations emphasize dialogue and adherence to public sector employment norms under the Department of Public Enterprises guidelines. The Numaligarh Refinery Employees' (NREU) represents permanent staff and has engaged in activities such as advocating against potential in 2019 to preserve PSU status. For contract workers, a 2025 Memorandum of Settlement with labor unions secured enhancements in wages, , and leave entitlements, benefiting over 15,000 personnel and promoting industrial harmony.

Operations

Capacity and Products

The Numaligarh Refinery operates at a current of 3 million metric tonnes per annum (MMTPA), equivalent to approximately 60,000 barrels per day, primarily indigenous crude oil from fields. This supports a product slate focused on key fuels, with representative annual outputs including around 0.6 MMTPA of motor spirit, 1.7 MMTPA of high-speed diesel, and 0.1 MMTPA of (LPG), alongside aviation turbine fuel (ATF) at about 0.035 MMTPA and wax at 0.038 MMTPA. The refinery's yield patterns emphasize high conversion to middle distillates, achieving approximately 72% of production as diesel and ATF, which aligns with the regional demand in northeast India for transportation and aviation fuels. This configuration maximizes value from low-sulfur crude, contributing to an overall exceeding 86%. In FY 2024-25, the refinery processed 3,066 thousand metric tonnes (TMT) of crude at over 100% , achieving a of 86.7%. In terms of financial performance for FY 2024-25, the refinery recorded revenue of ₹25,147 and profit after tax of ₹1,608 . Operational efficiency has been strong, with rates over 100% in FY 2024-25, and full compliance with BS-VI emission standards for fuels achieved by 2020.

Supply Chain and Pipelines

The Numaligarh Refinery primarily sources its crude oil from the Upper Assam oil fields operated by Limited (OIL) and (ONGC), enabling efficient utilization of indigenous production to meet its refining needs. This domestic minimizes transportation costs and supports regional by processing locally extracted crude, which is transported via a combination of dedicated pipelines from OIL's fields in areas like Naharkatia and , as well as road tankers for shorter hauls. Links to nearby facilities, including the historic oil fields, further integrate the refinery into Assam's upstream network, ensuring steady feedstock availability. For product distribution, the refinery relies on the Numaligarh-Siliguri Product Pipeline (NSPL), a 660 km onshore line operated by that delivers refined products to marketing terminals in and serves northeastern markets, including and beyond. As of November 2025, following completion of augmentation in October 2025, the NSPL has a capacity of 5.5 million metric tonnes per annum (MMTPA). Complementary rail and handles volume for local and short-distance supplies within . On-site storage infrastructure supports operational continuity and buffers against supply fluctuations for the refinery's 3 MMTPA processing capacity. To diversify beyond domestic sources, the refinery signed memoranda of understanding (MoUs) with Company Limited in for importing crude oil and (LPG), laying the groundwork for future pipeline-based imports from eastern ports.

Expansion Projects

Initial Expansions

The initial expansions at Numaligarh Refinery focused on enhancing processing capabilities and product quality in response to growing regional demand and national fuel standards. Following the refinery's commissioning in 2000 with an initial design capacity of approximately 2.5 million metric tonnes per annum (MMTPA), the first major upgrade occurred between 2005 and 2007 through the addition of a delayed coking unit (DCU). This unit processed heavy residues into lighter products like diesel and petroleum coke, effectively increasing the overall refining capacity to 3 MMTPA and improving bottom-of-the-barrel conversion efficiency. The project was completed on schedule, leveraging technology developed indigenously by CSIR-Indian Institute of Petroleum in collaboration with Engineers India Limited. In 2010, the refinery undertook a significant revamp of its existing hydrocracker unit as part of the Diesel Quality Upgradation Project (DQUP), aimed at boosting yields and achieving compliance with stricter emission norms. Licensed by Chevron Lummus Global and executed by Engineers India Limited, the revamp expanded the hydrocracker's capacity to 1.45 MMTPA while enhancing middle distillate production. The project, costing approximately ₹435 , was funded primarily through internal accruals and secured necessary approvals from the Ministry of Petroleum and Natural Gas. This upgrade not only increased operational flexibility but also addressed environmental compliance by reducing sulfur content in fuels. Concurrently with the hydrocracker revamp, the refinery implemented modifications to meet Euro-IV fuel specifications, marking its entry into of low-sulfur petrol and diesel. By early 2010, the first consignments of Euro-IV compliant motor spirit were dispatched, with the upgrades enabling full Euro-III high-speed diesel and limited Euro-IV volumes at 100% utilization. These enhancements included optimizations in hydrotreating processes and recovery units, ensuring alignment with the government's Auto Fuel Policy roadmap. Environmental measures, such as improved treatment and controls, were integrated into these projects to minimize ecological impact during the transition period. Overall, these pre-2014 initiatives were financed through a combination of NRL's and governmental clearances, laying the groundwork for subsequent larger-scale developments.

Integrated Expansion to 9 MMTPA

The integrated expansion project for Numaligarh Refinery, aimed at tripling its capacity from 3 million metric tonnes per annum (MMTPA) to 9 MMTPA (approximately 180,000 barrels per day), received approval from the Cabinet Committee on Economic Affairs on January 16, 2019. The initial project cost was estimated at ₹22,594 , financed through a combination of debt, equity, and Viability Gap Funding (VGF) from the government, with ₹15,102 allocated for debt. By October 2021, the cost had been revised upward to ₹28,026 , and as of August 2025, further revised to approximately ₹41,100 to account for escalations and scope adjustments. Central to the expansion are new refining units, including a 6 MMTPA Crude Unit (CDU) integrated with a Vacuum Unit (VDU), a 1.95 MMTPA Fluid Catalytic (FCC) unit for enhanced light product yields, and facilities for production such as . The project includes a 360 KTPA plant, with foundation stone laid in 2025 as part of efforts to boost intensity. Complementing these is the 1,630 km Paradip-Numaligarh Crude Pipeline (PNCPL), designed to transport up to 6 MMTPA of imported crude from Paradip Port in to the refinery, enabling access to global crude sources and reducing reliance on domestic supplies. Construction of the pipeline, which involves complex river crossings, is progressing in tandem with the refinery upgrades. The project is being implemented in phases, with overall physical progress reaching 81% as of September 2025 and mechanical completion of key units ongoing. Commissioning is scheduled to begin in December 2025, starting with the CDU, followed by progressive integration of downstream units for full operational capacity by 2027. Environmental clearance for the expansion was granted by the Ministry of Environment, Forest and Climate Change on July 27, 2020, ensuring compliance with pollution control and biodiversity safeguards.

Environmental and Social Impact

Environmental Concerns

The Numaligarh Refinery, situated approximately 15-20 km from , has drawn significant environmental scrutiny due to its operations in a , exacerbating concerns over and habitat disruption. In April 2025, an environmental activist lodged a complaint with the (CPCB) alleging that the refinery was discharging hazardous effluents directly into the Dhansiri River, a of the Brahmaputra, in violation of CPCB norms. Analysis of water samples revealed elevated (COD) levels exceeding permissible limits, indicating a toxic cocktail of oxidizable pollutants from refining processes that could lead to aquatic toxicity, impaired reproduction in fish populations, and of contaminants in the . Local residents near Panka village reported visible oil spills and murky water, further threatening the river's . A more acute incident occurred in July 2025, when toxic chemical leaks from the contaminated the Hatimara Jan in Rajabari village, triggering a crisis. The discharge caused foul odors, mass fish kills, and deaths, with villagers experiencing respiratory issues, skin irritations, and gastrointestinal ailments after exposure to the tainted water source. This event forced residents to abandon traditional water use and seek alternative supplies, highlighting ongoing risks from untreated industrial effluents. The National Green Tribunal (NGT) has intervened multiple times to address these issues. In its August 2016 order, the NGT directed the refinery to demolish a 2.2-kilometer boundary wall constructed without environmental clearance, as it obstructed a critical elephant corridor linking to Karbi Anglong hills, and to pay ₹25 to the Forest Department for forest cover destruction and hill flattening. This ruling was upheld by subsequent court decisions, including by the in 2024, emphasizing wildlife protection. In 2017, allegations surfaced of manipulations in the (EIA) for the refinery's proposed bamboo-based bioethanol project near Kaziranga, including omissions of reserve forest proximity and inadequate , leading to protests and the of an activist questioning the process. Despite these controversies, the project was completed and inaugurated on September 14, 2025, by as India's first bamboo-based , designed to produce approximately 49,000 tonnes of bioethanol annually from 300,000 tonnes of , promoting production. To counter these concerns, the refinery has implemented mitigation measures, including the operation of an advanced effluent treatment plant (ETP) designed to achieve zero-liquid discharge standards, particularly as part of its expansion to 9 MMTPA capacity. However, recent incidents in 2025 indicate ongoing challenges in fully preventing external releases. Compliance reports indicate that all generated effluents, totaling around 540 KLD, are intended to be treated onsite, with ongoing monitoring to meet regulatory requirements post-expansion.

Community and Economic Impact

The Numaligarh Refinery Limited (NRL) plays a pivotal role in bolstering Assam's by generating substantial revenue through taxes, duties, and dividends, contributing ₹3,819 to central and state exchequers in the financial year 2023-24. As the largest refinery in the state, NRL significantly enhances Assam's GDP through its operations and expansions, while the broader oil sector, including NRL, generates over ₹11,700 annually in royalties and taxes for the state. Additionally, NRL supplies approximately 43% of its petroleum products to the Northeast region, meeting a critical portion of the area's demands and supporting regional . NRL's corporate social responsibility (CSR) initiatives further amplify its economic impact, with an expenditure of ₹94.18 crore in FY 2023-24 directed toward , healthcare, and livelihood programs, benefiting over 23 individuals, predominantly from marginalized communities. In , NRL provides scholarships like the Gyandeep program to 442 students and supports school infrastructure upgrades, while healthcare efforts include renovating 40 hospitals and 8 primary health centers in , alongside distributing 11 ambulances. These investments, averaging around ₹90 annually in recent years, foster development and long-term economic in the region. Local employment opportunities at NRL prioritize residents of , particularly from , with recruitment policies historically favoring candidates registered through local employment exchanges, though recent directives have broadened access while maintaining a focus on regional talent. Complementing this, NRL's skill development programs under CSR have trained 64,526 beneficiaries in FY 2023-24 alone, emphasizing vocational trades, , and technical skills to enhance employability, with a 77% placement rate observed in earlier assessments from 2018-2020. Since its inception, these initiatives have empowered thousands of youth, generating potential business value of ₹422 and supporting income generation in rural areas. Infrastructure development spearheaded by NRL has transformed , including the construction and maintenance of the refinery township equipped with schools, hospitals, and residential facilities for over 1,000 employees and families. CSR-funded projects extend to rural areas, such as installing 600 streetlights, renovating in villages like Arengapara and Pankagrant, and upgrading school facilities in 12 local institutions, promoting and improved . In response to concerns during the 2017 biofuel protests near rhino habitats, NRL conducted public hearings to address environmental and land acquisition issues, incorporating feedback and compensation measures to facilitate progression and ongoing . As part of broader CSR, these efforts include brief environmental like drives targeting 100,000 saplings in .

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