State-owned Indian Oil Corp (IOC) has received green nod for upgradation of its Bongaigaon refinery for production of BS-VI grade fuels in Assam at a cost of Rs 4,185 crore. The company wants to upgrade its Bongaigaon Refinery (BGR) as the government aims to implement BS-VI fuel in the entire country from April 2020 to curb pollution. Oil firms will have to be prepared to retail BS VI-compliant fuel by then.
BGR, the eighth operating refinery of IOC, is situated at Dhaligaon in Chirang district, 200 km west of Guwahati. “The environment ministry after taking into account the recommendations of its expert appraisal committee has granted the environment clearance (EC) to IOC for revamp of Bongaigaon refinery,” a senior government official told PTI.
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The environment clearance is subject to certain specific and general conditions, he added. As per the proposal, IOC will increase the crude processing capacity from 2.35 million metric tonnes per annum (MMTPA) to 2.7 MMTPA, Diesel Hydrotreating Unit (DHDT) capacity from 1.2 MMTPA to 1.8 MMTPA , CRU-MSQ revamp and setting up of a Selective De-sulfurisation Unit (SDS).
The proposed project will be carried out within the existing premises and it would cost about Rs 4,185 crore. The BS-VI compliant fuel will help bring down the Nitrogen Oxide emissions from diesel cars by 68 per cent and 25 per cent from petrol engine cars, the company said. Besides, the project would also improve the smoke point of the kerosene stream from Assam and help reduction in emissions, it added.