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NRL to invest Rs 35,000 crore in major ongoing projects

The company is determined to execute the major ongoing initiatives, namely, Numaligarh Refinery expansion, Paradip Numaligarh crude oil pipeline and crude oil import terminal at Paradip, 2G ethanol project and IBFPL, Chairman cum Managing Director Ranjit Rath told reporters after the annual general meeting.

September 20, 2022 / 06:46 AM IST
Representative image

Representative image

The Numaligarh Refinery Ltd (NRL) has planned to invest Rs 35,000 crore for completion of its five major ongoing projects, including the India-Bangladesh Friendship Pipeline (IBFPL), in the next five years, a top company official said.

The company is determined to execute the major ongoing initiatives, namely, Numaligarh Refinery expansion, Paradip Numaligarh crude oil pipeline and crude oil import terminal at Paradip, 2G ethanol project and IBFPL, Chairman cum Managing Director Ranjit Rath told reporters after the annual general meeting.

"In the next five years, the company has planned to invest more than Rs 35,000 crore in completing these projects," he said. The projects will enable long-term business growth, and completion of these initiatives without any time and cost overrun remains the core focus area of the company, Rath said.

The approved cost of the expansion project is Rs 18,968 crore and as on June 30, 2022, the physical progress was 14.1 per cent and the cumulative financial commitment was Rs 11,996 crore, he said.

The approved cost of the crude oil pipeline and terminal projects is Rs 9,058 crore and by the end of the first fiscal of the current fiscal, the physical progress was 27.5 per cent while the financial progress was 33.01 per cent.

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Regarding the IBFPL project, the CMD said it has been targetted to be commissioned by October, 2022 and the overall physical progress till June 30 this year is 92.7 per cent.

"The financial year 2021-22 ended on a positive note, despite challenges and uncertainties which the company successfully surmounted, leveraging on resilience, adaptability and robust systems and procedures," he said.

During the 2021-22 fiscal, NRL achieved a throughput of 2,624 TMT that included 23 TMT of imported crude oil. The refinery also commenced a 10 per cent blending of ethanol in motor spirit (petrol) at its Siliguri and Numaligarh Marketing terminals, which is gaining momentum in the current financial year, the CMD pointed out.

He also allayed fear over safety procedures and asserted that the international practices were being followed after elaborate discussions with experts and other stakeholders. Sales during the year comprised 56 TMT of Gas Oil exported to Bangladesh and 125 TMT of Naphtha to Brahmaputra Cracker and Polymer Limited (BCPL) from external sources.

NRL Managing Director B J Phukan and other senior officials were also present on the occasion. The company has achieved the highest ever turnover of Rs 23,546 crore in the last fiscal, up by 26.95 per cent from the previous year, Rath said.

The record sales were due to the increase in product prices, he said. Addressing the 29th annual general meeting of the company, Rath said that the turnover has increased from the previous year's Rs 18,548 crore. The company has declared a dividend of 150 per cent during the financial year 2021-22, he said.

It posted a record profit of Rs 3,562 crore in FY22 as compared to Rs 3,036 crore in the previous year. The net worth of the company has increased to Rs 8,388 crore as on March 31, 2022 as compared to Rs 5,596 crore in the previous year.

It has contributed Rs 5,809 crore to the government exchequer in the form of taxes, duties and dividends. Products sold during the year, however, marked a decline at 2,799 TMT as compared to 2,924 TMT the previous year.
PTI
first published: Sep 20, 2022 06:49 am
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