From 50 Years Ago: Despite the Crude Base

Despite the Crude Base

Early this month, the Minister for Petroleum and Chemicals announced that the Gauhati refinery in Assam would be expanded from 0.75 million tonnes to 1.75 million tonnes. The decision to expand Gauhati followed an expert committee’s report in June. Three weeks after the Government d­ecision, the expert committee has been asked to ‘reconsider’ the question of whether Gauhati should be expanded or whether a second refinery should be set up nearer the crude oil well-head. The injunction to the committee followed a joint representation to the Centre of Assam Ministers and Members of Parliament, and even the leader of the State’s ‘Second Refinery Sangram Parishad.’ While the information made available to the public is too skimpy to be able to judge which alternative is more economic, the figure of Rs 5 crores has been brandished to underscore the heavy cost of another pipeline from the well-head to Gauhati. On the other hand what would be the additional cost of a totally fresh outlay for a refinery at the well-head? Further still, what are the grounds to believe that further expansion of refining capacity in Assam is at all warranted?