Bokakhat: The Numaligarh Refinery, a key institution established under the historic Assam Accord, is on the verge of marking a major milestone. India’s first bamboo-based ethanol project, located within the refinery premises, is nearly complete and will be inaugurated by Prime Minister Narendra Modi during his visit to Numaligarh on September 8, reports The Sentinel.
Built at a cost of ₹4,000 crore, the project is a joint effort between Numaligarh Refinery Limited (NRL) and Fortum (Samplex Oil and Associates), implemented through a joint venture led by NRL. A successful trial run of the plant in December 2024 confirmed that bamboo could be a viable raw material for ethanol production. With construction now nearing completion, the project is expected to bring new energy and employment to the region.
The bio-refinery is designed to process 3 lakh metric tonnes of bamboo annually and produce 49,000 metric tonnes of ethanol, along with several other chemicals. It also includes a 20 MW captive power plant to meet its energy requirements.
The supply chain for the bamboo feedstock has been built around four main groups—farmers, harvesters, local entrepreneurs (who will manage pre-processing units), and bamboo chip transporters. Bamboo will be harvested and delivered to pre-processing centres, which will also serve as storage hubs. All payments to stakeholders, including farmers, will be made via direct bank transfers. The project is expected to benefit around 30,000 rural households across Assam.
Alongside the ethanol project, the Numaligarh Refinery is undergoing a major expansion, increasing its capacity from 3 million metric tonnes per annum (MMTPA) to 9 MMTPA. Over 80% of the work is already completed, and full operations are expected to begin by the end of this year. The estimated cost of the expansion is ₹33,901 crore.
A major feature of the upgrade includes a new 6 MMTPA unit to process imported crude oil, which will support the production of propylene—a key petrochemical used in plastics. This move is aimed at reducing India’s reliance on petrochemical imports and opening doors to new manufacturing possibilities, including a proposed polypropylene unit.
One of the project’s key components is a 1,640-km crude oil pipeline from Paradip in Odisha to Numaligarh. Once finished, this will be among the longest crude oil pipelines in India, cutting across Odisha, West Bengal, Jharkhand, Bihar, and Assam. A significant engineering feat was achieved with a 4-km stretch of pipeline laid under the Ganga river using Horizontal Directional Drilling—the longest of its kind in the country.
Of the 16 over-dimension and over-weight consignments (ODC/OWC) required for the project, 14 have already been delivered.
The expanded refinery will cater to fuel demand in Eastern India, especially Assam, Bihar, West Bengal, Jharkhand, and Eastern Uttar Pradesh. Surplus fuel will be exported to neighbouring countries including Bangladesh, Nepal, and Myanmar through the India-Bangladesh Friendship Pipeline (IBFPL).
With around 8,000 workers currently involved in round-the-clock operations, the expansion and the ethanol project together mark a new chapter in Assam’s industrial growth. They are expected to create job opportunities and spur economic activity, while also strengthening India’s energy infrastructure in the Northeast.
