Prime Minister Narendra Modi is scheduled to disclose a massive windfall for the petroleum sector in Begusarai, Bihar, on March, news agency has learned. The projects he is announcing are expected to total an astounding Rs 1.5 lakh crore. A staggering Rs 1.62 lakh crore worth of projects in the energy, fertiliser, infrastructure, and rail connectivity sectors will be unveiled by the prime minister on March 2. According to sources, these initiatives will improve inhabitants’ quality of life and support the country’s economic progress.
Prime Minister Modi will lay the foundation stones for 39 projects in the petroleum industry. Of the 39, the PM will lay the groundwork for ten projects that will require an outlay of more than Rs 60,000 crore and launch 29 projects with a capital expenditure of Rs 89,000 crore. According to government officials who spoke with News agency, this significant financial investment is expected to completely transform the petroleum business by speeding up infrastructural developments, increasing production capabilities, and improving the general effectiveness of energy distribution networks.
The most significant projects are those related to the Oil and Natural Gas Corporation (ONGC) and the Krishna Godavari (KG) Basin. On 7 January of this year, the PM will dedicate the first oil produced from the KG Basin, and he will flag the first crude oil tanker, the “Swarna Sindhu,” from the ONGC Krishna Godavari deep-water project to MRPL Mangalore, Karnataka. With the potential to drastically lessen India’s reliance on energy imports, this will be a historic accomplishment for the country’s energy sector. Over the course of the project, the projected cumulative production of 14.24 MMT of oil and 30.50 BCM of petrol will reduce reliance on imports by $17.5 billion, assuming that oil prices are $80/bbl and petrol prices are $11/mmbtu.
At a cost of Rs 41,000 crore, the project is a massive deep-water venture that will utilise 26 subsea wells that will be drilled and completed at record-breaking depths to generate revenue from five gas and six oil fields. The project is anticipated to result in an 11% and 15% increase in ONGC’s overall output of gas and oil, respectively. Peak field production is anticipated to add around 7% to the country’s oil and gas output, or 45,000 barrels of oil per day (bopd) and roughly 10 MMSCMD of gas. Additionally, it will produce 2 lakh man-days of work.
The Visakh Refinery Modernization Project (VRMP) of HPCL, which aims to upgrade and expand the capacity of the Visakh Refinery in Visakhapatnam, Andhra Pradesh, at an investment of Rs 26,264 crore, would be the second significant project that the PM will inaugurate. “This project embodies our ‘Atmanirbhar Bharat’ initiative, with over 85% local content, generating massive employment opportunities and setting new benchmarks in innovation and sustainability. This project will produce Propylene, LPG, Naptha, MS, HSD, ATF, LDO, Bitumen, Sulphur, etc. Residue Upgradation Facility (RUF), a major part of the project is first-of-its-kind unit in India, with 93% conversion of bottom oils to value added products such as diesel and motor spirit, etc. This project would lead to 14% reduction in greenhouse gas emission per unit of crude processed due to improvement in energy utilisation due to technology upgradation and integration,” a government source said.
The third major project is the Rs 3,977 crore Mumbai High North Redevelopment Phase IV project by ONGC, which will provide 28,000 man-days worth of livelihood possibilities in addition to a cumulative production gain of 4.18 MMT and 0.51 BCM of gas by 2034–2035.
The PM will also unveil the Rs 2,495 crore Heera Redevelopment Phase-III Project, which is expected to yield a cumulative gain of 5.82 BCM gas and 3.546 MMt oil.
The PM will also officially open the ONGC-funded development of Nagayalanka Field in Andhra Pradesh, which would treble oil production from 90 m3/d to a record 256 m3/d, greatly enhancing India’s energy security. The project will cost Rs 285 crore.
The PM will lay the foundation stone for the sixth major project, the Barauni Refinery Expansion, which is scheduled to be completed by the end of 2024. At an estimated cost of Rs 11,412 crore, the project in Bihar aims to increase the installed capacity of Indian Oil’s Barauni Refinery from 6.0 MMTPA to 9.0 MMTPA, in addition to secondary process units such as petrochemical. It will lay the groundwork for the first Polypropylene plant in the state, which will be a big step forward for Bihar’s industrial sector. Because of its close proximity to the Barauni Refinery, the project will open up export potential in neighbouring Nepal through the Nepal-India border points of Raxaul and Jogbani. Nepal is reliant on imports from the Middle East and India due to an 80 KTPA polypropylene shortage.
The laying of the foundation for the Panipat Refinery Capacity Expansion, which has a deadline of December2025, is the seventh major project on the PM’s table on March 2. At a sanctioned cost of Rs38,231 crore, IOCL is carrying out the Panipat Refinery capacity expansion project from 15 to 25 MMTPA.
The PM will also officially open the Rs. 855-crore Indian Institute of Petroleum and Energy in Andhra Pradesh, which is a big step in the right direction towards developing a workforce with the necessary skills for the energy industry.
The PM will also lay the cornerstone of a Rs 2,103 crore Poly Butadiene Rubber plant in Panipat, which is scheduled to be completed by March 2025.
The Naphtha Cracker Expansion Project at Panipat Refinery, which is estimated to cost Rs 1,636 crore, would be the eleventh major project that the PM will officially open.
According to sources, the PM will also officially open the Rs 1,255 crore PX-PTA Expansion Project at Panipat Refinery, which will support the “Made in India” campaign by increasing local production of vital petrochemicals.
The installation of an ethanol plant based on LanzaTech Gas Fermentation Technology, together with related facilities at Panipat Refinery, valued at Rs 754 crore, is the twelfth major project that will be inaugurated. Utilising gas fermentation technology, Indian Oil’s ground-breaking 3G Ethanol unit at the Panipat Refinery and Petrochemical Complex generates 33.5 KTPA of ethanol from refinery off-gas.
The PM will also officially open fertiliser and railway projects, including the Rs 7,042 crore HURL Fertiliser Plant in Begusarai, Bihar, which has the potential to revolutionise the state’s agrarian sector. In Begusarai, a comprehensive blueprint to strengthen Bihar’s railway infrastructure, including the inauguration of new lines, doubling projects, and electrification, aimed at enhancing connectivity and supporting the state’s economic development, will also be witnessed by the people of Bihar as PM unveils various projects.
