PM Modi to Unveil Rs 1.5 Lakh-Cr Mega Bonanza for Petroleum Sector on March 2: The Big 12 on Cards | Exclusive

With major projects worth a whopping Rs 1.5 lakh crore, Prime Minister Narendra Modi is slated to unveil a mega bonanza for the petroleum sector in Bihar’s Begusarai on March 2, News18 has learnt. The worth of projects to be unveiled by the PM on March 2 across sectors such as energy, fertilisers, infrastructure and rail connectivity will be a colossal Rs 1.62 lakh crore. Sources said these projects will bolster the nation’s economic growth and enhance the quality of life for citizens.

ALSO READ | India to See $67 Billion Investments in Gas Sector in 5-6 Years: PM Modi

In the petroleum sector, a total of total 39 projects will be inaugurated or foundation stones will be laid by PM Modi. Of the 39, the PM will inaugurate 29 projects, with a capex of Rs 89,000 crore, and lay the foundation of 10 projects with an outlay of more than Rs 60,000 crore. This substantial financial infusion is set to revolutionise the petroleum industry, accelerating advancements in infrastructure, boosting production capacities and enhancing the overall efficiency of energy distribution networks, government sources have told News18.

The most important projects are the Krishna Godavari (KG) Basin project of the Oil and Natural Gas Corporation (ONGC) as the PM will dedicate ‘First Oil’ produced on January 7 this year from KG Basin and will flag first crude oil tanker ‘Swarna Sindhu’ from the ONGC Krishna Godavari deep-water project to MRPL Mangalore, Karnataka. This will mark a historic achievement in India’s energy sector, promising to significantly reduce India’s dependency on energy imports. The project envisages cumulative production of 14.24 MMT of oil and 30.50 BCM of gas; at oil price of $80/bbl and gas price of $11/mmbtu, this project will reduce import dependency by $ 17.5 billion over project life cycle.

The project is worth Rs 41,000 crore and is a monumental deep-water endeavour, monetising five gas and six oil fields through 26 subsea wells, drilled and completed in record depths. This project is likely to increase ONGC’s total oil and gas production by 11% and 15%, respectively. Peak production of field is expected to be 45,000 barrels of oil per day (bopd) and approx 10 MMSCMD of gas, adding approximately 7% to the national oil and gas production. It will also generate 2 lakh man days of employment.

The second big project to be inaugurated by the PM will be the Visakh Refinery Modernization Project (VRMP) of HPCL to modernise and enhance capacity of Visakh Refinery at Visakhapatnam, Andhra Pradesh, at an investment of Rs 26,264 crore. “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.

ALSO READ | ‘India Excellent Example of Balance Between Ecology, Economy’: PM Modi At COP28

The third big project will be the ONGC’s Mumbai High North Redevelopment Phase IV at cost of Rs 3,977 crore, which will achieve a cumulative production gain of 4.18 MMT and 0.51 BCM of gas by 2034-35, alongside generating livelihood opportunities totalling 28,000 man days.

The Heera Re-development Phase-III Project worth Rs 2,495 crore will also be unveiled by the PM, which anticipates a cumulative gain of 3.546 MMt oil and 5.82 BCM gas.

The PM will also inaugurate the development of Nagayalanka Field at a cost of Rs 285 crore in Andhra Pradesh, an ONGC project that will triple oil production from 90 m3/d to a record 256 m3/d, significantly bolstering India’s energy security.

The sixth big project, whose foundation stone will be laid by the PM, will be the Barauni Refinery Expansion with a completion deadline of 2024-end. The project in Bihar has been conceived to augment the capacity of Indian Oil’s Barauni Refinery from the current installed capacity of 6.0 MMTPA to 9.0 MMTPA, along with secondary process units, including petrochemical at an estimated cost of Rs 11,412 crore. It will set a foundation for the state’s first Polypropylene unit, marking a significant milestone in Bihar’s industrial landscape. The project will create export opportunities in neighboring Nepal through Nepal-India boarder points of Raxaul and Jogbani due to its proximity to Barauni Refinery. Nepal has a deficit of 80 KTPA of Polypropylene and is dependent on imports from India and the Middle-East.

The seventh big project on the PM’s table on March 2 is the foundation laying of the Panipat Refinery Capacity Expansion with a deadline of December 2025. IOCL is implementing the Panipat Refinery capacity expansion project from 15 to 25 MMTPA at an approved cost of Rs 38,231 crore.

The PM will also unveil the Rs 855-crore Indian Institute of Petroleum and Energy (IIPE) in Andhra Pradesh, representing a significant stride towards building a skilled workforce for the energy sector.

The PM will also lay the foundation stone of Poly Butadiene Rubber plant at Panipat worth Rs 2,103 crore with a completion deadline of March 2025.

The tenth big project to be inaugurated by the PM will be the Naphtha Cracker Expansion Project at Panipat Refinery worth Rs 1,636 crore.

The PM will also inaugurate the PX-PTA Expansion Project at Panipat Refinery worth Rs 1,255 crore, which will contribute to increased production of essential petrochemicals domestically, aligning with the ‘Make in India’ initiative, sources said.

ALSO READ | OPINION | India Energy Week 2024: It’s Here, It’s Bigger, And It’s Putting Bharat First

The twelfth big project which will be inaugurated is the installation of an ethanol plant based on LanzaTech Gas Fermentation Technology, along with associated facilities at Panipat Refinery worth Rs 754 crore. The Indian Oil’s pioneering 3G Ethanol plant at Panipat Refinery and Petrochemical Complex utilises Gas Fermentation Technology to produce 33.5 KTPA of Ethanol from refinery off-gas.

The PM will also inaugurate Railways and Fertilizer projects such as the HURL Fertilizer Plant at Begusarai in Bihar worth Rs 7,042 crore that could be a game-changer for Bihar’s agrarian economy. 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.

Leave a Comment