Cabinet approves capacity expansion of Numaligarh Refinery; govt to infuse Rs 6,000 cr in Exim Bank

The government on Wednesday approved a capacity expansion plan for Numaligarh Refinery in Assam from the existing 3 million metric tonnes per annum (MMTPA) to 9 MMTPA at an estimated cost of Rs 22,594 crore.

The project is to be completed within a period of 48 months after the approval and receipt of statutory clearances, Union Minister of Railways and Coal Piyush Goyal said in a press briefing.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, gave its approval to the project for expansion of Numligarh Refinery Assam with the capacity to be expanded from 3 MMTPA to 9 MMTPA.

The expansion project involves setting up a crude oil pipeline from Paradip to Numaligarh and product pipeline from Numaligarh to Siliguri at a cost of Rs 22,594 crore, he said.

The government also decided to recapitalise state-owned Exim Bank to the tune of Rs 6,000 crore and double its authorised capital to Rs 20,000 crore. The equity will be infused in two tranches -- Rs 4,500 crore in 2018-19 and Rs 1,500 crore in 2019-20.

"Cabinet approves recapitalisation of Export-Import Bank of India (Exim Bank) to the tune of Rs 6,000 crore and increase its authorised capital from Rs 10,000 crore to Rs 20,000 crore," he said.

Established by the Government of India, Exim Bank commenced operations as a purveyor of export credit, mirroring global export credit agencies. It serves as a growth engine for industries and small and medium enterprises through a wide range of products and services.

This includes the import of technology and export product development, export production, export marketing, pre-shipment and post-shipment, and overseas investment.