Inauguration of Gauhati Oil Refinery

The establishment of the first public sector refinery at Nunmati near Gauhati, Assam, represents a significant milestone in India’s industrial development, particularly in the oil sector. In modern industry, oil plays a vital role, serving as the lifeblood of various industrial processes. Recognizing the strategic importance of petroleum products in the nation’s economy, the Indian government decided to prioritize the exploration and production of oil as part of its development plans.

Crude oil extracted from oil wells requires refining to be usable in various consumer products such as gasoline, kerosene, diesel, lubricating oil, and asphalt. Oil refineries play a crucial role in this process, transforming crude oil into a diverse range of products through refining processes.

To fulfill the growing demand for petroleum products and reduce dependency on imports, the Indian Refineries Limited was incorporated on August 22, 1958, by the government of India. This public sector entity was tasked with constructing, operating, and maintaining refineries in Assam and Bihar. The refinery at Gauhati, with a processing capacity of 0.75 million metric tons of crude oil per annum, is the first of these refineries.

Once fully operational, the Gauhati refinery will produce various petroleum products, including kerosene, diesel oil, gasoline, furnace oil, and other by-products. By prioritizing the production of middle distillates like kerosene and diesel oil, the refinery aims to reduce the country’s reliance on imported petroleum products, thereby saving valuable foreign exchange.

The construction of the refinery was a massive undertaking, involving significant earthmoving, concrete construction, and equipment installation. Thousands of workers were employed in the construction process, which utilized resources from both domestic and international sources, including equipment from Romania.

The total cost of constructing the refinery was estimated at Rs. 17.7 crores, with the Romanian government providing long-term credit and technical assistance. Despite challenges, including logistical complexities and the need for extensive infrastructure development, the refinery’s completion represents a major achievement in India’s journey towards self-sufficiency in the oil industry.

The issuance of a special stamp commemorating the inauguration of the refinery by Prime Minister Jawaharlal Nehru on January 1, 1962, highlights this significant industrial achievement. The stamp features an image of the refinery and includes a picture of the one-horned rhinoceros, symbolizing the state of Assam where the refinery is located.