REFINERIES IN INDIA

1.1 As of July, 2005 there are a total of 18 refineries in the country comprising 17 in the Public Sector, one in the private sector. The company-wise locations and capacity of the refineries as on 1.7.2005 are given below:

* Million Metric Tonnes Per Annum

THE BRIEF DESCRIPTIONS OF THE ABOVE REFINERIES ARE AS FOLLOWS

2.1 Guwahati Refinery, IOCL (ASSAM)

Guwahati Refinery, the first in public sector, was set up in collaboration with Rumania at a cost of Rs.17.29 crores and commissioned on 1st January, 1962 with a design capacity of 0.75 MMTPA. The present capacity of this Refinery is 1.00 MMTPA. Hydrotreater Unit for improving the Quality of diesel has been installed and was commissioned in 2002. The refinery has also installed in 2003 Indmax Unit, a novel technology developed by its R&D Centre for upgrading heavy ends LPG, motor spirit and diesel oil.

2.2 Barauni Refinery, IOCL (BIHAR)

Barauni Refinery in Eastern India was built in collaboration with the Soviet Union at a cost of Rs.49.4 crores and went on stream in July, 1964. By November, 1967, the initial capacity of 2 MMTPA was expanded to 3 MMTPA by 1969. The present capacity of this refineries is 6.00 MMTPA. A Catalytic Reformer Unit (CRU) was also added to the refinery in 1997 for production of unleaded motor spirit. Projects are also planned for meeting future fuel quality requirements.

2.3 Koyali Refinery- IOCL (Gujarat)

The Gujarat Refinery was built with Soviet assistance at a cost of Rs.26.00 crores and went on stream in October, 1965. The Refinery had an initial installed capacity of 2 MMTPA and was designed to process crude from Ankleshwar, Kalol and Nawagam oilfields of Oil & Natural Gas Commission in Gujarat. In September, 1967, the capacity of the Refinery was expanded to 3 MMTPA. The capacity of the Refinery was further increased to 4.3 MMTPA through debottlenecking measures and to 7.3 MMTPA in October, 1978 by implementing an expansion project of Rs.56.07 crores. With the implementation of additional processing facilities the Refinery could achieve capacity of 9.5 MMTPA in 1989. The refining capacity was further expanded to 12.5 MMTPA with commissioning of 3.0 MMTPA CDU in September, 1999. The present refining capacity of this refinery is 13.70 MMTPA. In order to meet future fuel quality requirement, MS quality improvement facilities are planned to be installed by 2006.

2.4 Haldia Refinery - IOCL (WEST BENGAL)

The Haldia Refinery for processing 2.5 MMTPA of Middle East crude was commissioned in January, 1975 with two sectors - one for producing fuel products and the other for Lube base stocks. The fuel sector was built with French collaboration and the Lube sector with Romanian collaboration. The refining capacity of the Refinery was increased to 2.75 MMTPA in 1989 through debottlenecking measures. The refining capacity was further expanded to 3.75 MMTPA with the commissioning of new crude distillation unit of 1.0 MMTPA in March, 1997. The present refining capacity of this Refinery is 6.00 MMTPA.

2.5 Mathura Refinery – IOCL (UTTAR PRADESH)

The Mathura Refinery with a capacity of 6.00 MMTPA was set up at a cost of Rs.253.92 crores. The Refinery was commissioned in January, 1982 excluding FCCU and Sulphur Recovery Units which were commissioned in Jan, 1983. The refining capacity of this refinery was expanded to 7.5 MMTPA in 1989 by debottlenecking and revamping. A DHDS Unit was commissioned in 1989 for production of HSD with low sulphur content of 0.25% wt. ( max.). The present refining capacity of this Refinery is 8.00 MMTPA.

2.6 Digboi Refinery (ASSAM)

The Refinery was set up at Digboi in 1901 by Assam Oil Company Limited. The Indian Oil Corporation Ltd. took over the Refinery and marketing management of Assam Oil Company Ltd. with effect from 14.10.1981 and created a separate division. This division has both Refinery and marketing operations. The Refinery at Digboi had an installed capacity 0.50 MMTPA. The refining capacity of the Refinery was increased to 0.65 MMTPA by modernization of Refinery in July, 1996. A new delayed Coking Unit of 1,70,000 TPA capacity was commissioned in 1999. A new Solvent Dewaxing Unit for maximizing production of micro-crystalline wax was installed and commissioned in 2003. The refinery has also installed Hydrotreater to to improve the quality of diesel.

2.7 Panipat Refinery – IOCL (HARYANA)

The refinery was set up in 1998 at Baholi Village in Distt. Panipat, Haryana at an cost of Rs.3868 crores. The refining capacity of this refinery is 6.00 MMTPA. The expansion of refining capacity from 6 MMTPA to 12 MMTPA is in under implementation and is expected to completed by end 2005.

2.8 Mumbai Refinery (HPCL) (MAHARASHTRA)

The Refinery at Mumbai came into stream in 1954 under the ownership of ESSO. In March, 1974, Govt. of India acquired it. Hindustan Petroleum Corporation Ltd. was formed on 15.7.1974 after the merger of these companies. The capacity of the Mumbai Refinery of HPCL was 3.5 MMTPA which was increased to 5.5 MMTPA during 1986 after implementation of expansion programme.

2.9 Visakh Refinery (HPCL) (ANDHRA PRADESH)

In 1957, Visakh Refinery went on stream under the ownership of M/s Caltex India Ltd. In May, 1978, M/s Caltex Oil Refinery (India) was amalgamated with Hindustan Petroleum Corporation Ltd. The installed capacity of 1.5 MMTPA was increased to 4.5 MMTPA in 1985 and 7.5 MMTPA in 1999, through an expansion programme.

2.10 Bharat Petroleum Corporation Ltd. (BPCL) (MAHARASHTRA)

The Refinery at Mumbai came into stream in January, 1955 under the ownership of Burmah-Shell Refineries Ltd. Following the Government's acquisition of the Burmah-Shell, ame of the Refinery was changed to Bharat Refineries Limited on 11.2.1976. In August, 1977, the Company was given its permanent name, viz. Bharat Petroleum Corporation Ltd. The installed capacity of 5.25 MMTPA was increased to 6 MMTPA in 1985. The present refining capacity of the refinery is 6.9 MMTPA.

2.11.Manali Refinery -Chennai Petroleum Corporation Ltd. (CPCL)-Tamil Nadu

Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras Refineries Limited (MRL) was formed as a joint venture in 1965 between the Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC) having a share holding in the ratio 74%: 13%: 13% respectively. From the grassroots stage CPCL Refinery was set up with an installed capacity of 2.5 Million Tonnes Per Annum (MMTPA) in a record time of 27 months at a cost of Rs. 43 crore without any time or cost over run.

In 1985, AMOCO disinvested in favour of GOI and the shareholding percentage of GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI disinvested 16.92% of the paid up capital in favor of Unit Trust of India, Mutual Funds, Insurance Companies and Banks on 19th May 1992, thereby reducing its holding to 67.7 %. The public issue of CPCL shares at a premium of Rs. 70 (Rs. 90 to FIIs) in 1994 was over subscribed to an extent of 27 times and added a large shareholder base of over 90000.As a part of the restructuring steps taken up by the Government of India, Indian Oil Corporation Limited ( IOCL) acquired equity from GOI in 2000-01 Currently IOC holds 51.88% while NIOC continued its holding at 15.40%. In view of the CPCL become subsidiary of IOCL in 2001. The Manali Refinery has a capacity of 9.5 MMTPA and is one of the most complex refineries in India with Fuel, Lube, Wax and Petrochemical feedstocks production facilities.

2.12 Cauvery Basin Refinery-CPCL (Nagapattinam-Tamil Nadu)

CPCL’s second refinery is located at Cauvery Basin at Nagapattinam. The initial unit was set up in Nagapattinam with a capacity of 0.5 MMTPA in 1993 and later on its capacity was enhanced to 1.0 MMTPA.

2.13 Kochi Refineries Limited (KRL) (KERALA)

The Kochi Refineries Ltd. is a public sector undertaking set up in pursuance of a formation agreement dated 27th April, 1963 between Govt. of India, Phillips Petroleum Co. of USA and Duncan Brothers of Calcutta with an authorised capital of Rs.15 crores. Subsequently, the authorised capital was increased to Rs.75 crores and the paid up capital in March, 1989 stood at Rs.68.47 crores after issue of shares on rights basis. During the year, the Phillips Petroleum Company also completed withdrawal of their equity by disinvesting of shares. With this, in March 1989, Government was holding 61.58 percentage of equity shares of the Company. At present authorized capita of KRL is Rs 1150 crore and paid up capital Rs. 138.47 crore. M/s Bharat Petroleum Corporation Limited ( BPCL) holds 54.81% of the total shares, the balance of the shares being held by Government of Kerala, Financial Institutions and the Public. The installed capacity of 2.5 MMTPA was increased to 3.3 in September, 1973 and to 4.5 MMTPA in November, 1994. The capacity of the Refinery was further increased to 7.5 MMTPA in December, 95.

2.14 Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) (ASSAM)

On 20th January, 1974, M/s BRPL was incorporated in Assam under the Companies Act, 1956 with an authorised capital of Rs.50 crores. With the objective of installation of the Refinery having a crude processing capacity of 1 MMTPA and a Petrochemicals Complex consisting of Xylene, Di-Methyl Terephthalate (DMT) and Polyester Staple Fibre (PSF) Units. The complex was built and commissioned in phases. The capacity of Crude Distillation Unit was increased to 1.35 MMTPA from April, 1987 by debottlenecking. Now the authorised capital (equity) of the company is Rs.200 crores. The paid-up capital as on date is Rs.199.82 crores. As a part of the restructuring steps taken up by Govt. of India, Indian Oil Corporation Limited acquired Govt’s equity in 2000-01. In view of this BRPL became subsididary of IOCL in 2001.The capacity of the Refinery has been increased to 2.35 MMTPA in June, 1995 by installing additional unit.

2.15 Numaligarh Refinery Limited (ASSAM)

Numaligarh Refinery, Popularly known as “ Assam Accord Refinery” has been set up a grass –root refinery at Numaligarh in the district of Golaghat ( assam) in fulfilment of the commitment made by Government of India in the historic “ Assam Accord” , signed on 15-8-1985 at an approved cost of Rs, 2,724 crore.

Numaligarh Refinery Limited ( NRL) was incorporated on 22-4-1993. Presently Bharat Petroleum Corporation Limited holds 51% of the company’s equity. The other equity holder are Government of Assam, Oil Industry Development Board and Oil India Limited with equity participation of 10% each. The balance 19% equity is earmarked for a Public Issue. The refining capacity of this refinery is 3.0 MMTPA.

2.16 Mangalore Refinery and Petrochemicals Ltd. (MRPL) (KARNATAKA)

Government approved on 11.4.1991 the setting up a 3.0 MMTPA Oil Refinery at Mangalore at an estimated cost of Rs.1160 crores, including foreign exchange component of Rs.300 crores. The project has been implemented by a Joint Venture Company with Hindustan Petroleum Corporation Limited, Mumbai and Indian Rayon and Industrial Limited, Gujarat as Co-promoters. The Refinery was commissioned in March, 1996. MRPL which was a Joint Sector Company become a PSU subsequent on acquisition of its majority shares by ONGC. The capacity of the refinery was assessed at 3.69 MMTPA and has been further expanded to 9.69 MMTPA in September, 1999.

2.17 Tatipaka Refinery- ONGC ( Andhra Pradesh)

A mini refinery of ONGC with capacity of about 0.1 MMTPA with an approved cost of Rs.29.9 crore was commissioned in September, 2001 at Tatipaka in East Godavari District of Andhra Pradesh.

2.18 Reliance Petroleum Limited (RPL) Private Sector JAMNAGAR (GUJARAT)

The Private Sector Refinery (RPL) was commissioned on 14th July, 1999 with an installed capacity of 27 MMTPA at Jamnagar. The present capacity of this refinery is 33.00 MMTPA.

REFINING CAPACITY AND CAPACITY UTILISATION

3.1 To meet the growing demand of petroleum products, the refining capacity in the country has been gradually increased over the years by setting up of new refineries in the country as well as by expanding the refining capacity of the existing refineries. The total refining capacity in the country as on 1.7.2005 stands at 127.37 MMTPA.

3.2 The refining capacity, actual crude throughput and capacity utilisation during the last five years are indicated below :

EXPANSION OF EXISTING REFINERIES

Expansion plans of refining capacities of existing refineries are as under:-

(i) Expansion of Panipat Refinery of IOCL from 6 MMTPA to 12 MMTPA is under implementation at an estimated cost of Rs.4165 crore and is expected to be completed by end of 2005.

(ii) Expansion of Mumbai Refinery of BPCL from 6.9 MMTPA to 12 MMTPA is also under implementation at an estimated cost of Rs.1831 crore. The project is expected to be completed by July, 2005.

(iii) HPCL is expending the refining capacity of Mumbai Refinery from 5,5 MMTPA to 7.9 MMTPA with an estimated cost of Rs. 1152 crore. The project is expected to be completed by December, 2006.

(iv) Expansion of visakh refinery of HPCL from 7.5 MMTPA to 8.33 MMTPA is under implementation at an estimated cost of Rs. 1635 crore. The project is expected to be completed by December-2006.

Following three new refineries has been planned.

********

GUIDELINES FOR LAYING PETROLEM PRODUCT PIPELINES

In a major decision towards deregulation of oil sector and to attract investment in the petroleum product pipelines, in November, 2002, Government had laid down a new Petroleum Product Pipeline Policy for laying pipelines in the country on common carrier principle. Guidelines for laying petroleum product pipelines were notified on 20.11.2002. Supplementary guidelines in this regard have also been notified on 26-10-2004.

********

AUTO FUEL POLICY

Schedule for introducing improved quality fuels as per Auto Fuel Policy.

(i) Euro-III Petrol & Diesel has been introduced from 1-4-2005 in all 11 identifies cities ( Delhi/National Capital Region, Mumbai, kolkata, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur & Agra) in line with Auto Fuel Policy.

(ii) BS-II Petrol throughout the country has been introduced w.e.f 1-4-2005 in line with Auto Fuel Policy.

(iii) BS-II Diesel in all states except Rajasthan, West U.P, Utranchal, M.P, Punjab H.P and Jammu & Kashmir has been introduced from 1-4-2005 as per Auto Fuel Policy.

(iv) As per the revised programme BS-II diesel has been introduced in Rajasthan from 1-6-2005 and in West U.P and Uttaranchal from 1-7-2005.

(v) Introduction of BSII Diesel is proposed in a phased manner as per the revised programme as under:

(a) M.P from 1-9-2005

(b) Punjab, H.P and J&K from 1-10-2005