Date:25/07/2006 URL: http://www.thehindubusinessline.com/2006/07/25/stories/2006072502160200.htm

Back Govt mulls options to ensure crude supplies to NRL, Bongaigaon

Our Bureau

Kolkata , July 23

Pending credible assurance from ONGC and OIL for enhancing crude oil production in Assam and the rest of the North-East, the Union Ministry Of Petroleum and Natural Gas is reviewing alternative routes for ensuring crude availability to Numaligarh Refinery Ltd (NRL) and Bongaigaon Refinery and Petrochemicals Ltd (BRPL).

While both suffer from inadequate crude supplies in the region, the initiative will particularly to benefit NRL to help it finalise its capacity expansion plan.

Having proposed to expand capacity from three million tonnes (MT) to 4.5 MT, NRL is now taking a final view on the project vis-à-vis concerns in terms of crude availability.

According to sources, the Ministry is actively considering additional allocation of Assam crude to NRL from the existing allocation to BRPL, which may be offered incentives for sourcing the costlier imported crude.

The Ministry is expected to convene a meeting of all concerned on the issue shortly.

NRL goes slow on retail

Meanwhile, mounting under-recoveries have forced NRL to slam the brakes on its retailing ambitions.

Having already set up 65-70 outlets, mostly in the North-East and in the Eastern region, the company has decided to go slow on this project.

It recently announced plans to set up 125 new outlets.