The government has approved a proposal to allocate 1.5 million tonnes of Ravva crude to Bongaigaon Refinery and Petrochemicals Ltd from 2003-04.
This will increase the availability of crude for the refineries in the Northeast, which have been running below their capacities as a result of the shortage.
Coming after the revision in royalty which will benefit oil-producing states like Assam, this decision will improve the financial viability of refineries in the Northeast.
Considering the low sulphur characteristics of Ravva crude, the current allocation to Bongaigaon Refinery will also obviate the immediate need for a capital investment of about Rs 500 crore to produce Euro-II fuels," Petroleum Minister Ram Naik said.
