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Numaligarh Refinery achieves financial closure for refinery expansion project

Friday, 31 Dec 2021
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Numaligarh Refinery (NRL) has achieved financial closure for its upcoming six million tpa refinery expansion project. 
The loan agreement signing ceremony with lender banksled by the State Bank of India (SBI) was held in Guwahati, Assam, on 30 December 2021 which was attended by Senior Officials from all the member consortium banks, representatives from Oil India, government of Assam, and other stakeholders. 
NRL is undertaking a mega integrated refinery capacity expansion project to raise its refining capacity from three million tpa to nine million tpa at a cost of Rs 28,026 crore. 
As a part of the project, the company is also laying a crude oil pipeline (length – 1,640 km) from Paradip, Odisha to Numaligarh along with a crude oil import terminal at Paradip for receipt of imported crude. 
To fund the project, the company has tied up a project debt of Rs 18,904 crore with a consortium of 12 lenders led by SBI.  
The project is a prestigious and landmark project in the North-Eastern Region and is being pursued as part of the government of India's NE Hydrocarbon Vision 2030. 
The project will significantly contribute to the fulfillment of the country’s growing demand for hydrocarbon products and the development of the entire North-Eastern region. Further, the project will secure the availability of crude oil feedstock for the North-East-based Refineries and enable the export of hydrocarbon products to neighboring countries. 
NRL along with OIL and EIL and strong support from the government of Assam will be able to achieve tremendous synergy and contribute immensely towards ensuring energy security of the nation and achieving the targets set by MoPNG. 
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