Numaligarh Refinery Expansion Cost Likely to Rise to Rs 34,000 Crore

The cost of Numaligarh Refinery Ltd’s three-fold capacity expansion project is likely to increase by nearly Rs 5,900 crore to about Rs 34,000 crore. The company has proposed raising the project budget from Rs 28,026 crore to Rs 33,901 crore, which is under active consideration of the Public Investment Board and the Union Petroleum Ministry.

The brownfield project in Assam’s Golaghat district will expand capacity from 3 MMTPA to 9 MMTPA and is targeted for completion by December 2026. Officials said around 85% of the work has been completed, with Rs 27,601 crore already spent.

The cost escalation has been attributed to COVID-19 delays, higher procurement costs and heavy monsoon conditions. Once completed, the expanded refinery will significantly boost production of petrol, diesel and LPG, while also supporting new polypropylene and green hydrogen projects.