Lok Sabha Question No. 2220 (UNSTARRED), answered on 2015-08-03
Subject: Modernisation/Upgradation of Refineries
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SEETARAM AJMEERA NAIK, LAXMI NARAYAN YADAV, BHEEMRAO BASWANTHRAO PATIL, RAJESH RANJAN  (PAPPU  YADAV), RANJEET RANJAN, RAHUL KASWAN, VIJAY KUMAR S.R.

LOK SABHA

UNSTARRED QUESTION NO.2220

TO BE ANSWERED ON 3 RD AUGUST, 2015

**MODERNISATION/UPGRADATION OF REFINERIES**

2220.  PROF. A.S.R. NAIK:

SHRI LAXMI NARAYAN YADAV:

SHRI BHEEMRAO B. PATIL:

SHRI RAJESH RANJAN:

SHRIMATI RANJEET RANJAN:

SHRI RAHUL KASWAN:

SHRI S.R. VIJAYAKUMAR:

**पैट्रोलियम और प्राकृतिक गैस मंत्री**

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

(a) whether the Government proposes to undertake modernization / upgradation of the oil refineries across the country and to equip themselves in processing high sulphur crude oil to cut their import bill;

(b) if so, the details thereof including the funds earmarked, targets set for expansion of refining capacity, State/UT/Oil Marketing Company (OMC)-wise including Bharat Oman Refinery Limited (BORL), Barauni, Visakhpatnam and Manali refinery;

(c) the details of refineries functioning in the country at present along with their installed capacity/utilization and steps taken by the Government for optimum utilisation, OMC/State-wise including BORL and Barauni;

(d)  whether the Government proposes to set up more refineries/Lube plants in the country and if so, the details thereof along with places identified for the purpose, OMC/State-wise including Rajasthan and Karnataka; and

(e) whether Government has given instruction to BORL for providing employment to the local people and if so, the details thereof and action taken in this regard?

ANSWER

**पैट्रोलियम और प्राकृतिक गैस मंत्रालय में राज्य मंत्री (स्वतंत्र प्रभार) (श्री धर्मेन्द्र प्रधान)**

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  and (b): Indian refineries have adopted modern technologies for production of petroleum products and continuously upgrade the technologies in line with their requirements and international trends.

Apart from primary processing technologies, viz., Crude Oil Fractionation by Atmospheric Distillation and Vacuum Distillation for initial separation, the major modern process technologies employed by Public Sector Undertaking (PSU) refineries for producing petroleum products include:-

i) Secondary/Upgradation Technologies for yield improvement:

- Thermal cracking processes, viz., Visbreaking, Delayed Coking.

- Fluidised Catalytic Cracking, INDMAX Technology.

- Hydrocracking.

ii) Quality Upgradation Technologies:

- Catalytic Reforming, Isomerisation, Alkylation, Prime G for meeting the quality specifications of Petrol w.r.t. octane number, benzene content, aromatics, olefins, sulphur, distillation etc.

- Diesel Hydro-desulphurisation (DHDS), Diesel Hydro-treating (DHDT) for diesel for reduction of sulphur & PAH (Poly Aromatic Hydrocarbons) and cetane number improvement.

As per information received from Oil PSUs, they have undertaken a number of initiatives for upgradation and modernization of their refineries.  Details of such initiatives/projects are given at Annex-I.

(c)	Details of refineries functioning in the country along with their installed capacity/utilisation is given in Annex-II. Against the installed capacity of 215.066 Million Metric Tonne Per Annum (MMTPA), actual throughput of refineries during 2014-15 was 223.4 MMTPA. As such the utilization of capacity of refineries is more than the installed capacity.

(d):  Consequent to the de-licensing of the refinery sector in June, 1998, a refinery can be set up anywhere in India by a Private or Public Sector Enterprise, depending on its techno-commercial viability.  Indian Oil Corporation Limited is setting up a 15 MMTPA refinery at Paradip, Odisha. Government has approved the proposal of Hindustan Petroleum Corporation Limited to set up a 9 MMTPA Refinery-cum-Petrochemical Complex in Barmer District of Rajasthan, in collaboration with Government of Rajasthan.

(e)  It has been reported that Bharat Oman Refinery Limited (BORL) employs about 4,000 contract employees out of which 70% are from local region.  Further in BORL, the entry level staff is engineers.  BORL also has taken initiative to recruit the entry level officers from Madhya Pradesh region which is more than 60% of the total entry level employees.

**ANNEX-I**

**Annexure referred to in reply to parts  (a) & (b) of Lok Sabha Unstarred Question No.2220 to be answered on 3** **rd** **August, 2015.**

| Name of the Project                                                                                                                      | Objective                                                                                                                                                                                                                                                                       | Approved cost  (Rs. in crore)   | Target set for expansion   |
|------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|----------------------------|
| **INDIAN OIL CORPORATION LIMITED**                                                                                                       |                                                                                                                                                                                                                                                                                 |                                 |                            |
| New Bitumen Biturox Unit, Barauni Refinery, Bihar                                                                                        | ●Improving profitability  ●Increase in High Sulphur Crude processing from 11 to 16%                                                                                                                                                                                             | 71                              | September, 2016            |
| Coke chamber replacement in Coker-A, Barauni Refinery, Bihar                                                                             | ●Improving the reliability & safety of system  ●Yield & Energy saving                                                                                                                                                                                                   | 480                             | May, 2016                  |
| INDAdeptG Project, Guwahati Refinery, Assam                                                                                              | ●To Produce BS-IV MS                                                                                                                                                                                                                                                            | 163.88                          | July, 2016                 |
| Distillate Yield Improvement Project, Haldia Refinery, West Bengal                                                                       | ●Black Oil Upgradation  ●Distillate yield improvement from 67.2 to 71.4%  ●Increase in High Sulphur Crude processing from 61.4 to 82.4%  ●Increase in Refinery capacity from 7.5 to 8.0 MMTPA through revamp of CDU-I                                                           | 3,076                           | December, 2017             |
| Feed Preparation Unit, Haldia Refinery, West Bengal                                                                                      | ● To produce 53 TMTPA Gr-II LOBS                                                                                                                                                                                                                                                | 141                             | November, 2016             |
| Polypropylene Project, Paradip, Odisha                                                                                                   | ●To produce 700 TMTPA of value added Polypropylene using Propylene generated from INDMAX unit at Paradip                                                                                                                                                                        | 3,150                           | September, 2017            |
| Installation of Pre-Flash Vessel at Digboi Refinery                                                                                      | ●Enhancement of crude processing capacity                                                                                                                                                                                                                                       | 24.8                            | March, 2016                |
| Diversion of High Waxy Baghjan Crude at Digboi Refinery                                                                                  | ●To produce 3000 MT/ Annum additional Wax                                                                                                                                                                                                                                       | 10.0                            | December, 2015             |
| New Catalyst at HDTU in Digboi Refinery                                                                                                  | ●Incorporation of 2% Foots Oil in HDT Feed                                                                                                                                                                                                                                      | 10.0                            | April, 2015                |
| Gujarat Refinery Expansion from 13.7 to 18 MMTPA                                                                                         | ●Improving profitability by maximizing Diesel production and improvement of Distillate yield along with crude processing capacity enhancement  ●Increasing in High Sulphur crude processing capability from 58% to 70%  ●Producing 100% BS-VI compliant auto fuels (MS and HSD) | 8000                            | October, 2019              |
| **CHENNAI PETROLEUM CORPORATION LIMITED**                                                                                                |                                                                                                                                                                                                                                                                                 |                                 |                            |
| Delayed Coker Unit for Resid Upgradation Project                                                                                         | ●To increase distillate yield by 7%  ●Processing capability of High Sulphur Crudes from 72% to 83%.  ●Reduction of High Sulphur Fuel Oil production                                                                                                                             | 3110                            | December, 2015             |
| **BHARAT PETROLEUM CORPORATION LIMITED**                                                                                                 |                                                                                                                                                                                                                                                                                 |                                 |                            |
| Integrated Refinery Expansion Project(IREP) at Kochi Refinery, Kerala                                                                    | ●To produce auto fuels meeting Euro IV quality norms.  ●Upgrading fuels oil to value added products through bottoms upgradation.                                                                                                                                                | 16504                           | May, 2016                  |
| Replacement of Old Crude and Vacuum Distillation Units with an Integrated Crude/Vacuum Distillation Unit at Mumbai Refinery, Maharashtra | ●Installation of new state of art Integrated Crude and Vacuum Distillation Unit(CDU-4) as a replacement of old Crude and Vacuum Units.                                                                                                                                          | 1419                            | 2015                       |
| Conversion of existing Catalytic Reforming Unit (CRU) to an Isomerisation Unit at BPCL Mumbai Refinery, Maharashtra                      | ●100% Euro IV MS                                                                                                                                                                                                                                                                | 725                             | December, 2016             |

**ANNEX-II**

**Annexure referred to in reply to part  (c) of Lok Sabha Unstarred Question No.2220 to be answered on 3** **rd** **August, 2015.**

**Crude Oil Refined in Refineries and Capacity Utilisation**

| Oil Company                                   | Refinery           | S. No.   | Installed capacity, MMTPA as on 1  st  April 2015   | Actual Throughput during 2014-15, MMT   |
|-----------------------------------------------|--------------------|----------|-----------------------------------------------------|-----------------------------------------|
| Indian Oil Corporation Limited(IOCL)          | Guwahati           | 1.       | 1.00                                                | 1.0                                     |
| Indian Oil Corporation Limited(IOCL)          | Barauni            | 2.       | 6.00                                                | 5.9                                     |
| Indian Oil Corporation Limited(IOCL)          | Gujarat            | 3.       | 13.70                                               | 13.3                                    |
| Indian Oil Corporation Limited(IOCL)          | Haldia             | 4.       | 7.50                                                | 7.7                                     |
| Indian Oil Corporation Limited(IOCL)          | Mathura            | 5.       | 8.00                                                | 8.5                                     |
| Indian Oil Corporation Limited(IOCL)          | Digboi             | 6.       | 0.65                                                | 0.6                                     |
| Indian Oil Corporation Limited(IOCL)          | Panipat            | 7.       | 15.00                                               | 14.2                                    |
| Indian Oil Corporation Limited(IOCL)          | Bongaigaon         | 8.       | 2.35                                                | 2.4                                     |
| Indian Oil Corporation Limited(IOCL)          | **Sub-Total IOC**  |          | **54.20**                                           | **53.6**                                |
| Hindustan Petroleum Corporation Limited(HPCL) | Mumbai             | 9.       | 6.50                                                | 7.4                                     |
| Hindustan Petroleum Corporation Limited(HPCL) | Visakh             | 10.      | 8.30                                                | 8.8                                     |
| Hindustan Petroleum Corporation Limited(HPCL) | **Sub-Total HPCL** |          | **14.80**                                           | **16.2**                                |
| Bharat Petroleum Corporation Limited(BPCL)    | Mumbai             | 11.      | 12.00                                               | 12.8                                    |
| Bharat Petroleum Corporation Limited(BPCL)    | Kochi              | 12.      | 9.50                                                | 10.4                                    |
| Bharat Petroleum Corporation Limited(BPCL)    | **Sub-Total BPCL** |          | **21.50**                                           | **23.2**                                |
| Chennai Petroleum Corporation Limited(CPCL)   | Manali             | 13.      | 10.50                                               | 10.4                                    |
| Chennai Petroleum Corporation Limited(CPCL)   | CBR                | 14.      | 1.00                                                | 0.5                                     |
| Chennai Petroleum Corporation Limited(CPCL)   | **Sub-Total CPCL** |          | **11.50**                                           | **10.9**                                |
| Numaligarh Refinery Limited                   | Numaligarh         | 15.      | 3.00                                                | 2.8                                     |
| Numaligarh Refinery Limited                   |                    |          |                                                     |                                         |
| Oil & Natural Gas Corporation Limited(ONGC)   | MRPL               | 16.      | 15.00                                               | 14.6                                    |
| Oil & Natural Gas Corporation Limited(ONGC)   | Tatipaka           | 17.      | 0.066                                               | 0.05                                    |
| Oil & Natural Gas Corporation Limited(ONGC)   | **Sub-Total ONGC** |          | **15.066**                                          | **14.65**                               |
| Essar                                         | Jamnagar           | 18.      | 20.00                                               | 20.5                                    |
|                                               |                    |          |                                                     |                                         |
| Reliance Industries Limited                   | DTA                | 19.      | 33.00                                               | 30.9                                    |
| Reliance Industries Limited                   | SEZ                | 20.      | 27.00                                               | 37.1                                    |
| Reliance Industries Limited                   | **Sub-Total RIL**  |          | **60.00**                                           | **68.0**                                |
| Bharat Oman Refinery Limited                  | Bina               | 21.      | 6.00                                                | 6.2                                     |
| HPCL-Mittal Energy Limited                    | Bhatinda           | 22.      | 9.00                                                | 7.4                                     |
|                                               | **Total**          |          | **215.066**                                         | **223.4**                               |