Date:27/06/2006 URL: http://www.thehindubusinessline.com/2006/06/27/stories/2006062702580300.htm

Back NRL finalises report for expansion

Our Bureau

Kolkata, June 26

Numaligarh Refineries Ltd (NRL), a BPCL subsidiary, has finalised the detailed feasibility report (DFR) for capacity expansion up to 4.5 million tonne. The report is prepared by Engineers India Ltd (EIL). NRL is also exploring IPO option to fund the expansion plan. A company official said that the DFR was submitted recently and was being assessed by the company. The report was based on a pre-feasibility report, also prepared by EIL, for capacity expansion from the existing three million tonne.

The capacity augmentation is proposed at a time when country's largest crude oil producer ONGC is taking definitive steps to improve the company's dismal crude production scenario in the North East. OIL the largest crude producer in the North East is also taking measures to step up production. OIL is also a minority stake-holder in NRL.

It may be mentioned that the crude supply scenario was considered to be the largest bottleneck in not only expanding capacity of NRL but in optimising existing capacity. During 2005-06 the company's production plan suffered a set back due to acute supply crisis.